Correlation Between Shanghai Rightongene and Kangyue Technology
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Kangyue Technology Co, you can compare the effects of market volatilities on Shanghai Rightongene and Kangyue Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shanghai Rightongene with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Kangyue Technology.
Diversification Opportunities for Shanghai Rightongene and Kangyue Technology
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Kangyue is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Shanghai Rightongene is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shanghai Rightongene Biotechnology are associated (or correlated) with Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Kangyue Technology go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Kangyue Technology
Assuming the 90 days trading horizon Shanghai Rightongene Biotechnology is expected to generate 0.37 times more return on investment than Kangyue Technology. However, Shanghai Rightongene Biotechnology is 2.68 times less risky than Kangyue Technology. It trades about 0.36 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.27 per unit of risk. If you would invest 1,751 in Shanghai Rightongene Biotechnology on November 6, 2024 and sell it today you would earn a total of 208.00 from holding Shanghai Rightongene Biotechnology or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Kangyue Technology Co
Performance |
| Timeline |
| Shanghai Rightongene |
| Kangyue Technology |
Shanghai Rightongene and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Kangyue Technology
The main advantage of trading using opposite Shanghai Rightongene and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Kangyue Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Shanghai Rightongene vs. Kweichow Moutai Co | Shanghai Rightongene vs. G bits Network Technology | Shanghai Rightongene vs. Anhui Gujing Distillery | Shanghai Rightongene vs. Anhui Gujing Distillery |
| Kangyue Technology vs. Liaoning Dingjide Petrochemical | Kangyue Technology vs. Dhc Software Co | Kangyue Technology vs. Hangzhou Arcvideo Technology | Kangyue Technology vs. Guizhou Chanhen Chemical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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