Correlation Between Kuangda Technology and Gem Year
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By analyzing existing cross correlation between Kuangda Technology Group and Gem Year Industrial Co, you can compare the effects of market volatilities on Kuangda Technology and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Gem Year.
Diversification Opportunities for Kuangda Technology and Gem Year
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Gem is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Gem Year go up and down completely randomly.
Pair Corralation between Kuangda Technology and Gem Year
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 1.94 times less return on investment than Gem Year. But when comparing it to its historical volatility, Kuangda Technology Group is 1.3 times less risky than Gem Year. It trades about 0.16 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 421.00 in Gem Year Industrial Co on December 11, 2024 and sell it today you would earn a total of 91.00 from holding Gem Year Industrial Co or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Gem Year Industrial Co
Performance |
| Timeline |
| Kuangda Technology |
| Gem Year Industrial |
Kuangda Technology and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Gem Year
The main advantage of trading using opposite Kuangda Technology and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Kuangda Technology vs. Tederic Machinery Co | Kuangda Technology vs. Invengo Information Technology | Kuangda Technology vs. Hangzhou Zhongya Machinery | Kuangda Technology vs. Nanxing Furniture Machinery |
| Gem Year vs. Offshore Oil Engineering | Gem Year vs. Fujian Newland Computer | Gem Year vs. Zhejiang Yinlun Machinery | Gem Year vs. Citic Offshore Helicopter |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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