Correlation Between Kuangda Technology and Fujian Nanwang
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By analyzing existing cross correlation between Kuangda Technology Group and Fujian Nanwang Environment, you can compare the effects of market volatilities on Kuangda Technology and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Fujian Nanwang.
Diversification Opportunities for Kuangda Technology and Fujian Nanwang
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuangda and Fujian is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Kuangda Technology and Fujian Nanwang
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.28 times more return on investment than Fujian Nanwang. However, Kuangda Technology is 1.28 times more volatile than Fujian Nanwang Environment. It trades about 0.11 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.11 per unit of risk. If you would invest 375.00 in Kuangda Technology Group on October 18, 2024 and sell it today you would earn a total of 122.00 from holding Kuangda Technology Group or generate 32.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Kuangda Technology |
| Fujian Nanwang Envir |
Kuangda Technology and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Fujian Nanwang
The main advantage of trading using opposite Kuangda Technology and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Kuangda Technology vs. Xiamen Jihong Package | Kuangda Technology vs. Shanghai Action Education | Kuangda Technology vs. Zhejiang Publishing Media | Kuangda Technology vs. Jiahe Foods Industry |
| Fujian Nanwang vs. Kuangda Technology Group | Fujian Nanwang vs. Tianjin Ruixin Technology | Fujian Nanwang vs. Guangdong Xiongsu Technology | Fujian Nanwang vs. Keeson Technology Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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