Correlation Between Sinocelltech and Kangping Technology
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By analyzing existing cross correlation between Sinocelltech Group and Kangping Technology Co, you can compare the effects of market volatilities on Sinocelltech and Kangping 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 Sinocelltech with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocelltech and Kangping Technology.
Diversification Opportunities for Sinocelltech and Kangping Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocelltech and Kangping is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sinocelltech Group and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Sinocelltech 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 Sinocelltech Group are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Sinocelltech i.e., Sinocelltech and Kangping Technology go up and down completely randomly.
Pair Corralation between Sinocelltech and Kangping Technology
Assuming the 90 days trading horizon Sinocelltech Group is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sinocelltech Group is 1.07 times less risky than Kangping Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,918 in Kangping Technology Co on November 1, 2024 and sell it today you would earn a total of 267.00 from holding Kangping Technology Co or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocelltech Group vs. Kangping Technology Co
Performance |
| Timeline |
| Sinocelltech Group |
| Kangping Technology |
Sinocelltech and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocelltech and Kangping Technology
The main advantage of trading using opposite Sinocelltech and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocelltech position performs unexpectedly, Kangping 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Sinocelltech vs. Zhejiang Publishing Media | Sinocelltech vs. Duzhe Publishing Media | Sinocelltech vs. Kangping Technology Co | Sinocelltech vs. Jinhe Biotechnology Co |
| Kangping Technology vs. Sharetronic Data Technology | Kangping Technology vs. China Publishing Media | Kangping Technology vs. Holitech Technology Co | Kangping Technology vs. Sinocelltech Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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