Correlation Between Kuangda Technology and Bohai Leasing
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By analyzing existing cross correlation between Kuangda Technology Group and Bohai Leasing Co, you can compare the effects of market volatilities on Kuangda Technology and Bohai Leasing 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 Kuangda Technology with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Bohai Leasing.
Diversification Opportunities for Kuangda Technology and Bohai Leasing
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Bohai is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Kuangda Technology 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 Kuangda Technology Group are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Bohai Leasing go up and down completely randomly.
Pair Corralation between Kuangda Technology and Bohai Leasing
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.7 times more return on investment than Bohai Leasing. However, Kuangda Technology is 1.7 times more volatile than Bohai Leasing Co. It trades about -0.25 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.49 per unit of risk. If you would invest 581.00 in Kuangda Technology Group on October 11, 2024 and sell it today you would lose (94.00) from holding Kuangda Technology Group or give up 16.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Bohai Leasing Co
Performance |
| Timeline |
| Kuangda Technology |
| Bohai Leasing |
Kuangda Technology and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Bohai Leasing
The main advantage of trading using opposite Kuangda Technology and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Kuangda Technology vs. Kuang Chi Technologies | Kuangda Technology vs. Shanghai Shibei Hi Tech | Kuangda Technology vs. Hangzhou Arcvideo Technology | Kuangda Technology vs. Harbin Air Conditioning |
| Bohai Leasing vs. Shenyang Chemical Industry | Bohai Leasing vs. Jiujiang Shanshui Technology | Bohai Leasing vs. Soyea Technology Co | Bohai Leasing vs. Kuangda Technology Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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