Correlation Between Kuangda Technology and Dongguan Chitwing
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By analyzing existing cross correlation between Kuangda Technology Group and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Kuangda Technology and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Dongguan Chitwing.
Diversification Opportunities for Kuangda Technology and Dongguan Chitwing
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Dongguan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Kuangda Technology and Dongguan Chitwing
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 1.45 times less return on investment than Dongguan Chitwing. But when comparing it to its historical volatility, Kuangda Technology Group is 1.61 times less risky than Dongguan Chitwing. It trades about 0.16 of its potential returns per unit of risk. Dongguan Chitwing Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,755 in Dongguan Chitwing Technology on December 11, 2024 and sell it today you would earn a total of 259.00 from holding Dongguan Chitwing Technology or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| Kuangda Technology |
| Dongguan Chitwing |
Kuangda Technology and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Dongguan Chitwing
The main advantage of trading using opposite Kuangda Technology and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Kuangda Technology vs. Tederic Machinery Co | Kuangda Technology vs. Invengo Information Technology | Kuangda Technology vs. Hangzhou Zhongya Machinery | Kuangda Technology vs. Nanxing Furniture Machinery |
| Dongguan Chitwing vs. Xiamen Bank Co | Dongguan Chitwing vs. Shenyang Blue Silver | Dongguan Chitwing vs. Chenzhou Jingui Silver | Dongguan Chitwing vs. Lecron Energy Saving |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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