Correlation Between HeNan Splendor and Kuang Chi
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By analyzing existing cross correlation between HeNan Splendor Science and Kuang Chi Technologies, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Kuang Chi.
Diversification Opportunities for HeNan Splendor and Kuang Chi
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HeNan and Kuang is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Kuang Chi go up and down completely randomly.
Pair Corralation between HeNan Splendor and Kuang Chi
Assuming the 90 days trading horizon HeNan Splendor is expected to generate 3.29 times less return on investment than Kuang Chi. But when comparing it to its historical volatility, HeNan Splendor Science is 1.01 times less risky than Kuang Chi. It trades about 0.03 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,387 in Kuang Chi Technologies on October 16, 2024 and sell it today you would earn a total of 2,784 from holding Kuang Chi Technologies or generate 200.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Kuang Chi Technologies
Performance |
| Timeline |
| HeNan Splendor Science |
| Kuang Chi Technologies |
HeNan Splendor and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Kuang Chi
The main advantage of trading using opposite HeNan Splendor and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Nuode Investment Co | HeNan Splendor vs. Jointo Energy Investment | HeNan Splendor vs. Harbin Hatou Investment | HeNan Splendor vs. Guangzhou Zhujiang Brewery |
| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guizhou Chanhen Chemical | Kuang Chi vs. HeNan Splendor Science | Kuang Chi vs. China Everbright Bank |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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