Correlation Between Kuangda Technology and Chongqing Road
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By analyzing existing cross correlation between Kuangda Technology Group and Chongqing Road Bridge, you can compare the effects of market volatilities on Kuangda Technology and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Chongqing Road.
Diversification Opportunities for Kuangda Technology and Chongqing Road
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuangda and Chongqing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Chongqing Road go up and down completely randomly.
Pair Corralation between Kuangda Technology and Chongqing Road
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.81 times more return on investment than Chongqing Road. However, Kuangda Technology Group is 1.24 times less risky than Chongqing Road. It trades about 0.04 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about 0.0 per unit of risk. If you would invest 529.00 in Kuangda Technology Group on September 5, 2024 and sell it today you would earn a total of 8.00 from holding Kuangda Technology Group or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Chongqing Road Bridge
Performance |
| Timeline |
| Kuangda Technology |
| Chongqing Road Bridge |
Kuangda Technology and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Chongqing Road
The main advantage of trading using opposite Kuangda Technology and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. China Construction Bank | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Bank of China |
| Chongqing Road vs. Quectel Wireless Solutions | Chongqing Road vs. Shaanxi Broadcast TV | Chongqing Road vs. Fujian Longzhou Transportation | Chongqing Road 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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