Correlation Between Kuangda Technology and Sinomach General
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By analyzing existing cross correlation between Kuangda Technology Group and Sinomach General Machinery, you can compare the effects of market volatilities on Kuangda Technology and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Sinomach General.
Diversification Opportunities for Kuangda Technology and Sinomach General
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Sinomach is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Sinomach General go up and down completely randomly.
Pair Corralation between Kuangda Technology and Sinomach General
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Sinomach General. In addition to that, Kuangda Technology is 1.06 times more volatile than Sinomach General Machinery. It trades about -0.27 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.17 per unit of volatility. If you would invest 1,670 in Sinomach General Machinery on October 17, 2024 and sell it today you would lose (173.00) from holding Sinomach General Machinery or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Sinomach General Machinery
Performance |
| Timeline |
| Kuangda Technology |
| Sinomach General Mac |
Kuangda Technology and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Sinomach General
The main advantage of trading using opposite Kuangda Technology and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General'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 |
| Sinomach General vs. Kuangda Technology Group | Sinomach General vs. Montage Technology Co | Sinomach General vs. Hoshine Silicon Ind | Sinomach General 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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