Correlation Between Dhc Software and Kuangda Technology
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By analyzing existing cross correlation between Dhc Software Co and Kuangda Technology Group, you can compare the effects of market volatilities on Dhc Software 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 Dhc Software with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dhc Software and Kuangda Technology.
Diversification Opportunities for Dhc Software and Kuangda Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dhc and Kuangda is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dhc Software 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 Dhc Software 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 Dhc Software 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 Dhc Software i.e., Dhc Software and Kuangda Technology go up and down completely randomly.
Pair Corralation between Dhc Software and Kuangda Technology
Assuming the 90 days trading horizon Dhc Software Co is expected to generate 0.92 times more return on investment than Kuangda Technology. However, Dhc Software Co is 1.09 times less risky than Kuangda Technology. It trades about 0.09 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.01 per unit of risk. If you would invest 689.00 in Dhc Software Co on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Dhc Software Co or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dhc Software Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Dhc Software |
| Kuangda Technology |
Dhc Software and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dhc Software and Kuangda Technology
The main advantage of trading using opposite Dhc Software and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dhc Software 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.| Dhc Software vs. Jiangsu GDK Biotechnology | Dhc Software vs. Sichuan Hebang Biotechnology | Dhc Software vs. Maccura Biotechnology Co | Dhc Software vs. Jinhe Biotechnology Co |
| Kuangda Technology vs. StarPower Semiconductor | Kuangda Technology vs. New Hope Dairy | Kuangda Technology vs. Suzhou Oriental Semiconductor | Kuangda Technology vs. Qingdao Foods Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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