Correlation Between Fujian Newland and Kuang Chi
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By analyzing existing cross correlation between Fujian Newland Computer and Kuang Chi Technologies, you can compare the effects of market volatilities on Fujian Newland and Kuang Chi 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 Fujian Newland with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Kuang Chi.
Diversification Opportunities for Fujian Newland and Kuang Chi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Kuang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Fujian Newland 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 Fujian Newland Computer are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Fujian Newland i.e., Fujian Newland and Kuang Chi go up and down completely randomly.
Pair Corralation between Fujian Newland and Kuang Chi
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.9 times more return on investment than Kuang Chi. However, Fujian Newland Computer is 1.11 times less risky than Kuang Chi. It trades about 0.0 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.13 per unit of risk. If you would invest 2,126 in Fujian Newland Computer on September 15, 2024 and sell it today you would lose (26.00) from holding Fujian Newland Computer or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Kuang Chi Technologies
Performance |
| Timeline |
| Fujian Newland Computer |
| Kuang Chi Technologies |
Fujian Newland and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Kuang Chi
The main advantage of trading using opposite Fujian Newland and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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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