Correlation Between Kuangda Technology and HanS Laser
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By analyzing existing cross correlation between Kuangda Technology Group and HanS Laser Tech, you can compare the effects of market volatilities on Kuangda Technology and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and HanS Laser.
Diversification Opportunities for Kuangda Technology and HanS Laser
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuangda and HanS is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and HanS Laser go up and down completely randomly.
Pair Corralation between Kuangda Technology and HanS Laser
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.01 times more return on investment than HanS Laser. However, Kuangda Technology is 1.01 times more volatile than HanS Laser Tech. It trades about 0.03 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.03 per unit of risk. If you would invest 452.00 in Kuangda Technology Group on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Kuangda Technology Group or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. HanS Laser Tech
Performance |
| Timeline |
| Kuangda Technology |
| HanS Laser Tech |
Kuangda Technology and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and HanS Laser
The main advantage of trading using opposite Kuangda Technology and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. Bank of China | Kuangda Technology vs. China Construction Bank |
| HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. China State Construction | HanS Laser vs. China Mobile Limited | HanS Laser vs. Industrial and Commercial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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