Correlation Between Kuangda Technology and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Kuangda Technology Group and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Kuangda Technology and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Shijiazhuang Tonhe.
Diversification Opportunities for Kuangda Technology and Shijiazhuang Tonhe
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Shijiazhuang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Kuangda Technology and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Shijiazhuang Tonhe. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.74 times less risky than Shijiazhuang Tonhe. The stock trades about -0.3 of its potential returns per unit of risk. The Shijiazhuang Tonhe Electronics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,678 in Shijiazhuang Tonhe Electronics on October 12, 2024 and sell it today you would lose (73.00) from holding Shijiazhuang Tonhe Electronics or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Shijiazhuang Tonhe Electronics
Performance |
| Timeline |
| Kuangda Technology |
| Shijiazhuang Tonhe |
Kuangda Technology and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Shijiazhuang Tonhe
The main advantage of trading using opposite Kuangda Technology and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe'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 |
| Shijiazhuang Tonhe vs. Zhongfu Information | Shijiazhuang Tonhe vs. Bonree Data Technology | Shijiazhuang Tonhe vs. Kuangda Technology Group | Shijiazhuang Tonhe vs. Eyebright Medical Technology |
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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