Correlation Between Zangge Holding and KSEC Intelligent
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By analyzing existing cross correlation between Zangge Holding Co and KSEC Intelligent Technology, you can compare the effects of market volatilities on Zangge Holding and KSEC Intelligent 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 Zangge Holding with a short position of KSEC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zangge Holding and KSEC Intelligent.
Diversification Opportunities for Zangge Holding and KSEC Intelligent
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zangge and KSEC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zangge Holding Co and KSEC Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSEC Intelligent Tec and Zangge Holding 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 Zangge Holding Co are associated (or correlated) with KSEC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSEC Intelligent Tec has no effect on the direction of Zangge Holding i.e., Zangge Holding and KSEC Intelligent go up and down completely randomly.
Pair Corralation between Zangge Holding and KSEC Intelligent
Assuming the 90 days trading horizon Zangge Holding is expected to generate 1.56 times less return on investment than KSEC Intelligent. But when comparing it to its historical volatility, Zangge Holding Co is 1.99 times less risky than KSEC Intelligent. It trades about 0.03 of its potential returns per unit of risk. KSEC Intelligent Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,830 in KSEC Intelligent Technology on September 26, 2024 and sell it today you would earn a total of 113.00 from holding KSEC Intelligent Technology or generate 6.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zangge Holding Co vs. KSEC Intelligent Technology
Performance |
Timeline |
Zangge Holding |
KSEC Intelligent Tec |
Zangge Holding and KSEC Intelligent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zangge Holding and KSEC Intelligent
The main advantage of trading using opposite Zangge Holding and KSEC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zangge Holding position performs unexpectedly, KSEC Intelligent 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 KSEC Intelligent will offset losses from the drop in KSEC Intelligent's long position.Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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