Correlation Between 37 Interactive and KSEC Intelligent
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By analyzing existing cross correlation between 37 Interactive Entertainment and KSEC Intelligent Technology, you can compare the effects of market volatilities on 37 Interactive 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 37 Interactive with a short position of KSEC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and KSEC Intelligent.
Diversification Opportunities for 37 Interactive and KSEC Intelligent
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002555 and KSEC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment 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 37 Interactive 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 37 Interactive Entertainment 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 37 Interactive i.e., 37 Interactive and KSEC Intelligent go up and down completely randomly.
Pair Corralation between 37 Interactive and KSEC Intelligent
Assuming the 90 days trading horizon 37 Interactive is expected to generate 3.36 times less return on investment than KSEC Intelligent. But when comparing it to its historical volatility, 37 Interactive Entertainment is 1.23 times less risky than KSEC Intelligent. It trades about 0.01 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
37 Interactive Entertainment vs. KSEC Intelligent Technology
Performance |
Timeline |
37 Interactive Enter |
KSEC Intelligent Tec |
37 Interactive and KSEC Intelligent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 37 Interactive and KSEC Intelligent
The main advantage of trading using opposite 37 Interactive and KSEC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive 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.37 Interactive vs. China Life Insurance | 37 Interactive vs. Cinda Securities Co | 37 Interactive vs. Piotech Inc A | 37 Interactive vs. Dongxing Sec Co |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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