Correlation Between Beijing UniStrong and Kuang Chi
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By analyzing existing cross correlation between Beijing UniStrong Science and Kuang Chi Technologies, you can compare the effects of market volatilities on Beijing UniStrong 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 Beijing UniStrong with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing UniStrong and Kuang Chi.
Diversification Opportunities for Beijing UniStrong and Kuang Chi
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Kuang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Beijing UniStrong 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 Beijing UniStrong 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 Beijing UniStrong 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 Beijing UniStrong i.e., Beijing UniStrong and Kuang Chi go up and down completely randomly.
Pair Corralation between Beijing UniStrong and Kuang Chi
Assuming the 90 days trading horizon Beijing UniStrong Science is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Beijing UniStrong Science is 1.28 times less risky than Kuang Chi. The stock trades about -0.24 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,396 in Kuang Chi Technologies on October 23, 2024 and sell it today you would earn a total of 38.00 from holding Kuang Chi Technologies or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing UniStrong Science vs. Kuang Chi Technologies
Performance |
| Timeline |
| Beijing UniStrong Science |
| Kuang Chi Technologies |
Beijing UniStrong and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing UniStrong and Kuang Chi
The main advantage of trading using opposite Beijing UniStrong and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing UniStrong 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.| Beijing UniStrong vs. Kuang Chi Technologies | Beijing UniStrong vs. Nanjing Putian Telecommunications | Beijing UniStrong vs. Ningbo Tech Bank Co | Beijing UniStrong vs. Postal Savings Bank |
| Kuang Chi vs. Dawning Information Industry | Kuang Chi vs. Digital China Information | Kuang Chi vs. Shanghai Action Education | Kuang Chi vs. COL Digital Publishing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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