Correlation Between Kangyue Technology and GRINM Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangyue Technology Co and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Kangyue Technology and GRINM Semiconductor 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 GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and GRINM Semiconductor.
Diversification Opportunities for Kangyue Technology and GRINM Semiconductor
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and GRINM is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor 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 GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Kangyue Technology and GRINM Semiconductor
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 1.57 times more return on investment than GRINM Semiconductor. However, Kangyue Technology is 1.57 times more volatile than GRINM Semiconductor Materials. It trades about 0.2 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.15 per unit of risk. If you would invest 354.00 in Kangyue Technology Co on September 16, 2024 and sell it today you would earn a total of 353.00 from holding Kangyue Technology Co or generate 99.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kangyue Technology Co vs. GRINM Semiconductor Materials
Performance |
Timeline |
Kangyue Technology |
GRINM Semiconductor |
Kangyue Technology and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangyue Technology and GRINM Semiconductor
The main advantage of trading using opposite Kangyue Technology and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, GRINM Semiconductor 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor'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 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |