Correlation Between Kuangda Technology and Hubei Dinglong
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By analyzing existing cross correlation between Kuangda Technology Group and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Kuangda Technology and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Hubei Dinglong.
Diversification Opportunities for Kuangda Technology and Hubei Dinglong
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Hubei is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Kuangda Technology and Hubei Dinglong
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 5.31 times less return on investment than Hubei Dinglong. But when comparing it to its historical volatility, Kuangda Technology Group is 1.08 times less risky than Hubei Dinglong. It trades about 0.0 of its potential returns per unit of risk. Hubei Dinglong Chemical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,265 in Hubei Dinglong Chemical on October 16, 2024 and sell it today you would earn a total of 235.00 from holding Hubei Dinglong Chemical or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kuangda Technology Group vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Kuangda Technology |
| Hubei Dinglong Chemical |
Kuangda Technology and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Hubei Dinglong
The main advantage of trading using opposite Kuangda Technology and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong'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 |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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