Correlation Between Guangdong Skychem and Keeson Technology
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By analyzing existing cross correlation between Guangdong Skychem Technology and Keeson Technology Corp, you can compare the effects of market volatilities on Guangdong Skychem and Keeson 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 Guangdong Skychem with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Skychem and Keeson Technology.
Diversification Opportunities for Guangdong Skychem and Keeson Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Keeson is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Skychem Technology and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and Guangdong Skychem 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 Guangdong Skychem Technology are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Guangdong Skychem i.e., Guangdong Skychem and Keeson Technology go up and down completely randomly.
Pair Corralation between Guangdong Skychem and Keeson Technology
Assuming the 90 days trading horizon Guangdong Skychem Technology is expected to generate 1.51 times more return on investment than Keeson Technology. However, Guangdong Skychem is 1.51 times more volatile than Keeson Technology Corp. It trades about 0.04 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about 0.02 per unit of risk. If you would invest 8,658 in Guangdong Skychem Technology on September 30, 2024 and sell it today you would earn a total of 3,342 from holding Guangdong Skychem Technology or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Skychem Technology vs. Keeson Technology Corp
Performance |
| Timeline |
| Guangdong Skychem |
| Keeson Technology Corp |
Guangdong Skychem and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Skychem and Keeson Technology
The main advantage of trading using opposite Guangdong Skychem and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Skychem position performs unexpectedly, Keeson 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
| Keeson Technology vs. Agricultural Bank of | Keeson Technology vs. Industrial and Commercial | Keeson Technology vs. Bank of China | Keeson Technology vs. China Construction Bank |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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