Correlation Between Citic Offshore and Kuangda Technology
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By analyzing existing cross correlation between Citic Offshore Helicopter and Kuangda Technology Group, you can compare the effects of market volatilities on Citic Offshore and Kuangda 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 Citic Offshore with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Kuangda Technology.
Diversification Opportunities for Citic Offshore and Kuangda Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Kuangda is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Citic Offshore 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 Citic Offshore Helicopter are associated (or correlated) with Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Citic Offshore i.e., Citic Offshore and Kuangda Technology go up and down completely randomly.
Pair Corralation between Citic Offshore and Kuangda Technology
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to generate 1.19 times more return on investment than Kuangda Technology. However, Citic Offshore is 1.19 times more volatile than Kuangda Technology Group. It trades about 0.13 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.12 per unit of risk. If you would invest 2,217 in Citic Offshore Helicopter on November 5, 2024 and sell it today you would earn a total of 103.00 from holding Citic Offshore Helicopter or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Kuangda Technology Group
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Kuangda Technology |
Citic Offshore and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Kuangda Technology
The main advantage of trading using opposite Citic Offshore and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Kuangda 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Citic Offshore vs. Tianjin Ruixin Technology | Citic Offshore vs. Jiangsu Yanghe Brewery | Citic Offshore vs. BTG Hotels Group | Citic Offshore vs. Bangyan Technology Co |
| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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