Correlation Between Kuangda Technology and China Reform
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By analyzing existing cross correlation between Kuangda Technology Group and China Reform Health, you can compare the effects of market volatilities on Kuangda Technology and China Reform 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 China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and China Reform.
Diversification Opportunities for Kuangda Technology and China Reform
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and China is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health 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 China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and China Reform go up and down completely randomly.
Pair Corralation between Kuangda Technology and China Reform
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.15 times more return on investment than China Reform. However, Kuangda Technology is 1.15 times more volatile than China Reform Health. It trades about -0.27 of its potential returns per unit of risk. China Reform Health is currently generating about -0.36 per unit of risk. If you would invest 594.00 in Kuangda Technology Group on October 17, 2024 and sell it today you would lose (97.00) from holding Kuangda Technology Group or give up 16.33% 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. China Reform Health
Performance |
| Timeline |
| Kuangda Technology |
| China Reform Health |
Kuangda Technology and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and China Reform
The main advantage of trading using opposite Kuangda Technology and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Kuangda Technology vs. Xiamen Jihong Package | Kuangda Technology vs. Shanghai Action Education | Kuangda Technology vs. Zhejiang Publishing Media | Kuangda Technology vs. Jiahe Foods Industry |
| China Reform vs. Kuangda Technology Group | China Reform vs. Kuang Chi Technologies | China Reform vs. Hangzhou Arcvideo Technology | China Reform vs. Anhui Deli Household |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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