Correlation Between Kuangda Technology and Kuang Chi
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By analyzing existing cross correlation between Kuangda Technology Group and Kuang Chi Technologies, you can compare the effects of market volatilities on Kuangda Technology and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Kuang Chi.
Diversification Opportunities for Kuangda Technology and Kuang Chi
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuangda and Kuang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Kuang Chi go up and down completely randomly.
Pair Corralation between Kuangda Technology and Kuang Chi
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.33 times less risky than Kuang Chi. The stock trades about -0.02 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,099 in Kuang Chi Technologies on December 4, 2024 and sell it today you would lose (44.00) from holding Kuang Chi Technologies or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Kuang Chi Technologies
Performance |
| Timeline |
| Kuangda Technology |
| Kuang Chi Technologies |
Kuangda Technology and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Kuang Chi
The main advantage of trading using opposite Kuangda Technology and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Kuangda Technology vs. BYD Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial |
| Kuang Chi vs. Panda Financial Holding | Kuang Chi vs. Fsilon Furnishing and | Kuang Chi vs. Huasi Agricultural Development | Kuang Chi vs. Ningbo Tech Bank 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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