Correlation Between Kangyue Technology and Gan Yuan
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By analyzing existing cross correlation between Kangyue Technology Co and Gan Yuan Foods, you can compare the effects of market volatilities on Kangyue Technology and Gan Yuan 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 Kangyue Technology with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Gan Yuan.
Diversification Opportunities for Kangyue Technology and Gan Yuan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Gan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Kangyue Technology 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 Kangyue Technology Co are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Gan Yuan go up and down completely randomly.
Pair Corralation between Kangyue Technology and Gan Yuan
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 2.18 times more return on investment than Gan Yuan. However, Kangyue Technology is 2.18 times more volatile than Gan Yuan Foods. It trades about 0.18 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.3 per unit of risk. If you would invest 354.00 in Kangyue Technology Co on September 17, 2024 and sell it today you would earn a total of 327.00 from holding Kangyue Technology Co or generate 92.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kangyue Technology Co vs. Gan Yuan Foods
Performance |
Timeline |
Kangyue Technology |
Gan Yuan Foods |
Kangyue Technology and Gan Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangyue Technology and Gan Yuan
The main advantage of trading using opposite Kangyue Technology and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.Kangyue Technology vs. Bomesc Offshore Engineering | Kangyue Technology vs. Agricultural Bank of | Kangyue Technology vs. Shenwu Energy Saving | Kangyue Technology vs. Chengdu Spaceon Electronics |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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