Correlation Between Soyea Technology and Kuangda Technology
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By analyzing existing cross correlation between Soyea Technology Co and Kuangda Technology Group, you can compare the effects of market volatilities on Soyea Technology 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 Soyea Technology with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Kuangda Technology.
Diversification Opportunities for Soyea Technology and Kuangda Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Soyea and Kuangda is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Soyea 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 Soyea Technology Co 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 Soyea Technology i.e., Soyea Technology and Kuangda Technology go up and down completely randomly.
Pair Corralation between Soyea Technology and Kuangda Technology
Assuming the 90 days trading horizon Soyea Technology is expected to generate 2.81 times less return on investment than Kuangda Technology. In addition to that, Soyea Technology is 1.07 times more volatile than Kuangda Technology Group. It trades about 0.01 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.04 per unit of volatility. If you would invest 486.00 in Kuangda Technology Group on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Kuangda Technology Group or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Soyea Technology |
| Kuangda Technology |
Soyea Technology and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Kuangda Technology
The main advantage of trading using opposite Soyea Technology and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology 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.| Soyea Technology vs. Industrial and Commercial | Soyea Technology vs. China Construction Bank | Soyea Technology vs. Bank of China | Soyea Technology vs. Agricultural Bank of |
| Kuangda Technology vs. Lutian Machinery Co | Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. Bank of China | Kuangda Technology vs. Gansu Jiu Steel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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