Correlation Between Kuangda Technology and Hua Xia
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By analyzing existing cross correlation between Kuangda Technology Group and Hua Xia Bank, you can compare the effects of market volatilities on Kuangda Technology and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Hua Xia.
Diversification Opportunities for Kuangda Technology and Hua Xia
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuangda and Hua is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Hua Xia go up and down completely randomly.
Pair Corralation between Kuangda Technology and Hua Xia
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.7 times more return on investment than Hua Xia. However, Kuangda Technology is 1.7 times more volatile than Hua Xia Bank. It trades about 0.04 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.05 per unit of risk. If you would invest 431.00 in Kuangda Technology Group on October 12, 2024 and sell it today you would earn a total of 56.00 from holding Kuangda Technology Group or generate 12.99% 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. Hua Xia Bank
Performance |
| Timeline |
| Kuangda Technology |
| Hua Xia Bank |
Kuangda Technology and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Hua Xia
The main advantage of trading using opposite Kuangda Technology and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Bohai Leasing Co | Hua Xia vs. Easyhome New Retail | Hua Xia vs. Ningbo Construction Co | Hua Xia vs. Sinomach General Machinery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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