Correlation Between Kuangda Technology and Guangdong Silvere
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By analyzing existing cross correlation between Kuangda Technology Group and Guangdong Silvere Sci, you can compare the effects of market volatilities on Kuangda Technology and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Guangdong Silvere.
Diversification Opportunities for Kuangda Technology and Guangdong Silvere
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Guangdong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Kuangda Technology and Guangdong Silvere
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Guangdong Silvere. In addition to that, Kuangda Technology is 1.1 times more volatile than Guangdong Silvere Sci. It trades about -0.04 of its total potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.0 per unit of volatility. If you would invest 657.00 in Guangdong Silvere Sci on October 30, 2024 and sell it today you would lose (9.00) from holding Guangdong Silvere Sci or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Kuangda Technology |
| Guangdong Silvere Sci |
Kuangda Technology and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Guangdong Silvere
The main advantage of trading using opposite Kuangda Technology and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
| Guangdong Silvere vs. Queclink Wireless Solutions | Guangdong Silvere vs. Changchun Engley Automobile | Guangdong Silvere vs. Wintao Communications Co | Guangdong Silvere 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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