Correlation Between Kuangda Technology and Hangzhou Gaoxin
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By analyzing existing cross correlation between Kuangda Technology Group and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Kuangda Technology and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Hangzhou Gaoxin.
Diversification Opportunities for Kuangda Technology and Hangzhou Gaoxin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Hangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Kuangda Technology and Hangzhou Gaoxin
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.66 times more return on investment than Hangzhou Gaoxin. However, Kuangda Technology Group is 1.51 times less risky than Hangzhou Gaoxin. It trades about -0.3 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about -0.21 per unit of risk. If you would invest 595.00 in Kuangda Technology Group on October 12, 2024 and sell it today you would lose (108.00) from holding Kuangda Technology Group or give up 18.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Kuangda Technology |
| Hangzhou Gaoxin Rubber |
Kuangda Technology and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Hangzhou Gaoxin
The main advantage of trading using opposite Kuangda Technology and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin'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 |
| Hangzhou Gaoxin vs. Guangzhou KingTeller Technology | Hangzhou Gaoxin vs. Jinhe Biotechnology Co | Hangzhou Gaoxin vs. XiaMen HongXin Electron tech | Hangzhou Gaoxin vs. Kuangda Technology Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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