Correlation Between Kangyue Technology and JCET Group
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By analyzing existing cross correlation between Kangyue Technology Co and JCET Group Co, you can compare the effects of market volatilities on Kangyue Technology and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and JCET Group.
Diversification Opportunities for Kangyue Technology and JCET Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and JCET is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and JCET Group go up and down completely randomly.
Pair Corralation between Kangyue Technology and JCET Group
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the JCET Group. In addition to that, Kangyue Technology is 1.73 times more volatile than JCET Group Co. It trades about -0.12 of its total potential returns per unit of risk. JCET Group Co is currently generating about -0.05 per unit of volatility. If you would invest 4,105 in JCET Group Co on September 22, 2024 and sell it today you would lose (107.00) from holding JCET Group Co or give up 2.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.65% |
Values | Daily Returns |
Kangyue Technology Co vs. JCET Group Co
Performance |
Timeline |
Kangyue Technology |
JCET Group |
Kangyue Technology and JCET Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangyue Technology and JCET Group
The main advantage of trading using opposite Kangyue Technology and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Gome Telecom Equipment | Kangyue Technology vs. Holitech Technology Co | Kangyue Technology vs. Zotye Automobile 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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