Correlation Between HanS Laser and Kuangda Technology
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By analyzing existing cross correlation between HanS Laser Tech and Kuangda Technology Group, you can compare the effects of market volatilities on HanS Laser 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 HanS Laser with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Kuangda Technology.
Diversification Opportunities for HanS Laser and Kuangda Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HanS and Kuangda is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and HanS Laser 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 HanS Laser Tech 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 HanS Laser i.e., HanS Laser and Kuangda Technology go up and down completely randomly.
Pair Corralation between HanS Laser and Kuangda Technology
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 1.22 times more return on investment than Kuangda Technology. However, HanS Laser is 1.22 times more volatile than Kuangda Technology Group. It trades about 0.11 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.09 per unit of risk. If you would invest 2,457 in HanS Laser Tech on August 26, 2024 and sell it today you would earn a total of 193.00 from holding HanS Laser Tech or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Kuangda Technology Group
Performance |
| Timeline |
| HanS Laser Tech |
| Kuangda Technology |
HanS Laser and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Kuangda Technology
The main advantage of trading using opposite HanS Laser and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser 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.| HanS Laser vs. Biwin Storage Technology | HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. Industrial and Commercial | HanS Laser vs. China Construction Bank |
| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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