Correlation Between Kuangda Technology and Central Plains
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By analyzing existing cross correlation between Kuangda Technology Group and Central Plains Environment, you can compare the effects of market volatilities on Kuangda Technology and Central Plains 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 Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Central Plains.
Diversification Opportunities for Kuangda Technology and Central Plains
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Central is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir 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 Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Central Plains go up and down completely randomly.
Pair Corralation between Kuangda Technology and Central Plains
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Central Plains. In addition to that, Kuangda Technology is 2.38 times more volatile than Central Plains Environment. It trades about -0.25 of its total potential returns per unit of risk. Central Plains Environment is currently generating about -0.26 per unit of volatility. If you would invest 890.00 in Central Plains Environment on October 11, 2024 and sell it today you would lose (65.00) from holding Central Plains Environment or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Central Plains Environment
Performance |
| Timeline |
| Kuangda Technology |
| Central Plains Envir |
Kuangda Technology and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Central Plains
The main advantage of trading using opposite Kuangda Technology and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' 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 |
| Central Plains vs. Digiwin Software Co | Central Plains vs. Kuangda Technology Group | Central Plains vs. Keeson Technology Corp | Central Plains vs. Sinofibers Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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