Correlation Between Kuangda Technology and Dongguan Aohai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuangda Technology Group and Dongguan Aohai Technology, you can compare the effects of market volatilities on Kuangda Technology and Dongguan Aohai 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 Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Dongguan Aohai.
Diversification Opportunities for Kuangda Technology and Dongguan Aohai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Dongguan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Kuangda Technology and Dongguan Aohai
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 9.73 times less return on investment than Dongguan Aohai. But when comparing it to its historical volatility, Kuangda Technology Group is 1.11 times less risky than Dongguan Aohai. It trades about 0.03 of its potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Dongguan Aohai Technology
Performance |
| Timeline |
| Kuangda Technology |
| Dongguan Aohai Technology |
Kuangda Technology and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Dongguan Aohai
The main advantage of trading using opposite Kuangda Technology and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Dongguan Aohai 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 Aohai will offset losses from the drop in Dongguan Aohai's long position.| Kuangda Technology vs. Eastroc Beverage Group | Kuangda Technology vs. Hubei Dinglong Chemical | Kuangda Technology vs. Guangzhou Seagull Kitchen | Kuangda Technology vs. Guizhou Chanhen Chemical |
| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |