Correlation Between Kuangda Technology and Der International
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By analyzing existing cross correlation between Kuangda Technology Group and Der International Home, you can compare the effects of market volatilities on Kuangda Technology and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Der International.
Diversification Opportunities for Kuangda Technology and Der International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Der is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Der International go up and down completely randomly.
Pair Corralation between Kuangda Technology and Der International
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.8 times more return on investment than Der International. However, Kuangda Technology Group is 1.25 times less risky than Der International. It trades about 0.0 of its potential returns per unit of risk. Der International Home is currently generating about -0.02 per unit of risk. If you would invest 518.00 in Kuangda Technology Group on October 15, 2024 and sell it today you would lose (42.00) from holding Kuangda Technology Group or give up 8.11% 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. Der International Home
Performance |
| Timeline |
| Kuangda Technology |
| Der International Home |
Kuangda Technology and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Der International
The main advantage of trading using opposite Kuangda Technology and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff Co |
| Der International vs. GuoChuang Software Co | Der International vs. Cansino Biologics | Der International vs. Fujian Boss Software | Der International vs. Guangzhou KDT Machinery |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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