Correlation Between Li Kang and AGV Products
Can any of the company-specific risk be diversified away by investing in both Li Kang and AGV Products at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Li Kang and AGV Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Kang Biomedical and AGV Products Corp, you can compare the effects of market volatilities on Li Kang and AGV Products 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 Li Kang with a short position of AGV Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Kang and AGV Products.
Diversification Opportunities for Li Kang and AGV Products
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 6242 and AGV is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Li Kang Biomedical and AGV Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGV Products Corp and Li Kang 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 Li Kang Biomedical are associated (or correlated) with AGV Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGV Products Corp has no effect on the direction of Li Kang i.e., Li Kang and AGV Products go up and down completely randomly.
Pair Corralation between Li Kang and AGV Products
Assuming the 90 days trading horizon Li Kang Biomedical is expected to generate 1.59 times more return on investment than AGV Products. However, Li Kang is 1.59 times more volatile than AGV Products Corp. It trades about 0.03 of its potential returns per unit of risk. AGV Products Corp is currently generating about 0.04 per unit of risk. If you would invest 4,074 in Li Kang Biomedical on February 8, 2024 and sell it today you would earn a total of 1,116 from holding Li Kang Biomedical or generate 27.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Li Kang Biomedical vs. AGV Products Corp
Performance |
Timeline |
Li Kang Biomedical |
AGV Products Corp |
Li Kang and AGV Products Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Li Kang and AGV Products
The main advantage of trading using opposite Li Kang and AGV Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Kang position performs unexpectedly, AGV Products 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 AGV Products will offset losses from the drop in AGV Products' long position.Li Kang vs. Datavan International | Li Kang vs. Trade Van Information Services | Li Kang vs. Data International Co | Li Kang vs. Information Technology Total |
AGV Products vs. Taisun Enterprise Co | AGV Products vs. Wei Chuan Foods | AGV Products vs. Hunya Foods Co | AGV Products vs. Chia Hsin Cement |
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.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Commodity Directory Find actively traded commodities issued by global exchanges |