Correlation Between Kuangda Technology and Changchun
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By analyzing existing cross correlation between Kuangda Technology Group and Changchun UP Optotech, you can compare the effects of market volatilities on Kuangda Technology and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Changchun.
Diversification Opportunities for Kuangda Technology and Changchun
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Changchun is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Changchun go up and down completely randomly.
Pair Corralation between Kuangda Technology and Changchun
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 1.61 times less return on investment than Changchun. But when comparing it to its historical volatility, Kuangda Technology Group is 1.13 times less risky than Changchun. It trades about 0.06 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,558 in Changchun UP Optotech on January 27, 2025 and sell it today you would earn a total of 1,266 from holding Changchun UP Optotech or generate 49.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Changchun UP Optotech
Performance |
| Timeline |
| Kuangda Technology |
| Changchun UP Optotech |
Kuangda Technology and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Changchun
The main advantage of trading using opposite Kuangda Technology and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Kuangda Technology vs. Hygon Information Technology | Kuangda Technology vs. Marssenger Kitchenware Co | Kuangda Technology vs. Nanjing Canatal Data | Kuangda Technology vs. AVCON Information Tech |
| Changchun vs. AVIC Fund Management | Changchun vs. Masterwork Machinery | Changchun vs. Chengdu Spaceon Electronics | Changchun vs. Harvest Fund Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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