Correlation Between Kuangda Technology and Heilongjiang Transport
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By analyzing existing cross correlation between Kuangda Technology Group and Heilongjiang Transport Development, you can compare the effects of market volatilities on Kuangda Technology and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Heilongjiang Transport.
Diversification Opportunities for Kuangda Technology and Heilongjiang Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Heilongjiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Kuangda Technology and Heilongjiang Transport
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.85 times more return on investment than Heilongjiang Transport. However, Kuangda Technology Group is 1.18 times less risky than Heilongjiang Transport. It trades about 0.04 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of risk. If you would invest 486.00 in Kuangda Technology Group on September 14, 2024 and sell it today you would earn a total of 97.00 from holding Kuangda Technology Group or generate 19.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Kuangda Technology |
| Heilongjiang Transport |
Kuangda Technology and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Heilongjiang Transport
The main advantage of trading using opposite Kuangda Technology and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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