Correlation Between Kangyue Technology and Sichuan Chuantou
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By analyzing existing cross correlation between Kangyue Technology Co and Sichuan Chuantou Energy, you can compare the effects of market volatilities on Kangyue Technology and Sichuan Chuantou 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 Sichuan Chuantou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Sichuan Chuantou.
Diversification Opportunities for Kangyue Technology and Sichuan Chuantou
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kangyue and Sichuan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Sichuan Chuantou Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Chuantou Energy 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 Sichuan Chuantou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Chuantou Energy has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Sichuan Chuantou go up and down completely randomly.
Pair Corralation between Kangyue Technology and Sichuan Chuantou
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 4.32 times more return on investment than Sichuan Chuantou. However, Kangyue Technology is 4.32 times more volatile than Sichuan Chuantou Energy. It trades about 0.16 of its potential returns per unit of risk. Sichuan Chuantou Energy is currently generating about -0.06 per unit of risk. If you would invest 368.00 in Kangyue Technology Co on September 24, 2024 and sell it today you would earn a total of 268.00 from holding Kangyue Technology Co or generate 72.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kangyue Technology Co vs. Sichuan Chuantou Energy
Performance |
Timeline |
Kangyue Technology |
Sichuan Chuantou Energy |
Kangyue Technology and Sichuan Chuantou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangyue Technology and Sichuan Chuantou
The main advantage of trading using opposite Kangyue Technology and Sichuan Chuantou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Sichuan Chuantou 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 Sichuan Chuantou will offset losses from the drop in Sichuan Chuantou's long position.Kangyue Technology vs. Ming Yang Smart | Kangyue Technology vs. 159681 | Kangyue Technology vs. 159005 | Kangyue Technology vs. Loctek Ergonomic Technology |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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