Correlation Between Kuangda Technology and Jahen Household
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By analyzing existing cross correlation between Kuangda Technology Group and Jahen Household Products, you can compare the effects of market volatilities on Kuangda Technology and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Jahen Household.
Diversification Opportunities for Kuangda Technology and Jahen Household
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Jahen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Jahen Household go up and down completely randomly.
Pair Corralation between Kuangda Technology and Jahen Household
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.71 times more return on investment than Jahen Household. However, Kuangda Technology Group is 1.41 times less risky than Jahen Household. It trades about 0.0 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.02 per unit of risk. If you would invest 518.00 in Kuangda Technology Group on October 13, 2024 and sell it today you would lose (42.00) from holding Kuangda Technology Group or give up 8.11% 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. Jahen Household Products
Performance |
| Timeline |
| Kuangda Technology |
| Jahen Household Products |
Kuangda Technology and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Jahen Household
The main advantage of trading using opposite Kuangda Technology and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Kuangda Technology vs. Suzhou Douson Drilling | Kuangda Technology vs. Tianjin Ruixin Technology | Kuangda Technology vs. Aba Chemicals Corp | Kuangda Technology vs. Yingde Greatchem Chemicals |
| Jahen Household vs. Anhui Huaren Health | Jahen Household vs. Kuangda Technology Group | Jahen Household vs. Digiwin Software Co | Jahen Household vs. Tianjin Ruixin 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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