Correlation Between Kuangda Technology and Digiwin Software
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By analyzing existing cross correlation between Kuangda Technology Group and Digiwin Software Co, you can compare the effects of market volatilities on Kuangda Technology and Digiwin Software 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 Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Digiwin Software.
Diversification Opportunities for Kuangda Technology and Digiwin Software
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Digiwin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software 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 Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Digiwin Software go up and down completely randomly.
Pair Corralation between Kuangda Technology and Digiwin Software
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 2.76 times less return on investment than Digiwin Software. But when comparing it to its historical volatility, Kuangda Technology Group is 1.37 times less risky than Digiwin Software. It trades about 0.04 of its potential returns per unit of risk. Digiwin Software Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,597 in Digiwin Software Co on October 12, 2024 and sell it today you would earn a total of 801.00 from holding Digiwin Software Co or generate 50.16% 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. Digiwin Software Co
Performance |
| Timeline |
| Kuangda Technology |
| Digiwin Software |
Kuangda Technology and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Digiwin Software
The main advantage of trading using opposite Kuangda Technology and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| Kuangda Technology vs. Kuang Chi Technologies | Kuangda Technology vs. Shanghai Shibei Hi Tech | Kuangda Technology vs. Hangzhou Arcvideo Technology | Kuangda Technology vs. Harbin Air Conditioning |
| Digiwin Software vs. China Life Insurance | Digiwin Software vs. Cinda Securities Co | Digiwin Software vs. Piotech Inc A | Digiwin Software vs. Dongxing Sec Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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