Correlation Between Kangyue Technology and Senci Electric
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By analyzing existing cross correlation between Kangyue Technology Co and Senci Electric Machinery, you can compare the effects of market volatilities on Kangyue Technology and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Senci Electric.
Diversification Opportunities for Kangyue Technology and Senci Electric
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangyue and Senci is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Senci Electric go up and down completely randomly.
Pair Corralation between Kangyue Technology and Senci Electric
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 2.47 times more return on investment than Senci Electric. However, Kangyue Technology is 2.47 times more volatile than Senci Electric Machinery. It trades about 0.17 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.18 per unit of risk. If you would invest 380.00 in Kangyue Technology Co on September 13, 2024 and sell it today you would earn a total of 309.00 from holding Kangyue Technology Co or generate 81.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kangyue Technology Co vs. Senci Electric Machinery
Performance |
Timeline |
Kangyue Technology |
Senci Electric Machinery |
Kangyue Technology and Senci Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangyue Technology and Senci Electric
The main advantage of trading using opposite Kangyue Technology and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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