Correlation Between Industrial and Kangping Technology
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By analyzing existing cross correlation between Industrial and Commercial and Kangping Technology Co, you can compare the effects of market volatilities on Industrial and Kangping 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 Industrial with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Kangping Technology.
Diversification Opportunities for Industrial and Kangping Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Kangping is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Industrial 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 Industrial and Commercial are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Industrial i.e., Industrial and Kangping Technology go up and down completely randomly.
Pair Corralation between Industrial and Kangping Technology
Assuming the 90 days trading horizon Industrial is expected to generate 2.68 times less return on investment than Kangping Technology. But when comparing it to its historical volatility, Industrial and Commercial is 2.36 times less risky than Kangping Technology. It trades about 0.16 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,703 in Kangping Technology Co on September 11, 2024 and sell it today you would earn a total of 677.00 from holding Kangping Technology Co or generate 39.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Industrial and Commercial vs. Kangping Technology Co
Performance |
Timeline |
Industrial and Commercial |
Kangping Technology |
Industrial and Kangping Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial and Kangping Technology
The main advantage of trading using opposite Industrial and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Kangping 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.Industrial vs. Luyin Investment Group | Industrial vs. Nuode Investment Co | Industrial vs. Beijing Mainstreets Investment | Industrial vs. Cultural Investment Holdings |
Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. China Construction Bank | Kangping Technology vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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