Correlation Between Kuangda Technology and Guangdong Shenglu
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By analyzing existing cross correlation between Kuangda Technology Group and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Kuangda Technology and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Guangdong Shenglu.
Diversification Opportunities for Kuangda Technology and Guangdong Shenglu
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuangda and Guangdong is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Kuangda Technology and Guangdong Shenglu
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Guangdong Shenglu. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.13 times less risky than Guangdong Shenglu. The stock trades about -0.09 of its potential returns per unit of risk. The Guangdong Shenglu Telecommunication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 694.00 in Guangdong Shenglu Telecommunication on August 26, 2024 and sell it today you would earn a total of 8.00 from holding Guangdong Shenglu Telecommunication or generate 1.15% 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. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Kuangda Technology |
| Guangdong Shenglu |
Kuangda Technology and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Guangdong Shenglu
The main advantage of trading using opposite Kuangda Technology and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology vs. G bits Network Technology |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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