Correlation Between Hangzhou Zhongya and Kingsignal Technology
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By analyzing existing cross correlation between Hangzhou Zhongya Machinery and Kingsignal Technology Co, you can compare the effects of market volatilities on Hangzhou Zhongya and Kingsignal Technology 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 Hangzhou Zhongya with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Zhongya and Kingsignal Technology.
Diversification Opportunities for Hangzhou Zhongya and Kingsignal Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Kingsignal is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Zhongya Machinery and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Hangzhou Zhongya 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 Hangzhou Zhongya Machinery are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Hangzhou Zhongya i.e., Hangzhou Zhongya and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Hangzhou Zhongya and Kingsignal Technology
Assuming the 90 days trading horizon Hangzhou Zhongya is expected to generate 1.96 times less return on investment than Kingsignal Technology. But when comparing it to its historical volatility, Hangzhou Zhongya Machinery is 1.33 times less risky than Kingsignal Technology. It trades about 0.02 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 736.00 in Kingsignal Technology Co on September 19, 2024 and sell it today you would earn a total of 203.00 from holding Kingsignal Technology Co or generate 27.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hangzhou Zhongya Machinery vs. Kingsignal Technology Co
Performance |
Timeline |
Hangzhou Zhongya Mac |
Kingsignal Technology |
Hangzhou Zhongya and Kingsignal Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Zhongya and Kingsignal Technology
The main advantage of trading using opposite Hangzhou Zhongya and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Zhongya position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.Hangzhou Zhongya vs. Industrial and Commercial | Hangzhou Zhongya vs. Kweichow Moutai Co | Hangzhou Zhongya vs. Agricultural Bank of | Hangzhou Zhongya vs. China Mobile Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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