Correlation Between Kuangda Technology and Ye Chiu
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By analyzing existing cross correlation between Kuangda Technology Group and Ye Chiu Metal, you can compare the effects of market volatilities on Kuangda Technology and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Ye Chiu.
Diversification Opportunities for Kuangda Technology and Ye Chiu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and 601388 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Ye Chiu go up and down completely randomly.
Pair Corralation between Kuangda Technology and Ye Chiu
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.45 times more return on investment than Ye Chiu. However, Kuangda Technology is 1.45 times more volatile than Ye Chiu Metal. It trades about -0.01 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.13 per unit of risk. If you would invest 494.00 in Kuangda Technology Group on November 3, 2024 and sell it today you would lose (4.00) from holding Kuangda Technology Group or give up 0.81% 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. Ye Chiu Metal
Performance |
| Timeline |
| Kuangda Technology |
| Ye Chiu Metal |
Kuangda Technology and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Ye Chiu
The main advantage of trading using opposite Kuangda Technology and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Kuangda Technology vs. StarPower Semiconductor | Kuangda Technology vs. New Hope Dairy | Kuangda Technology vs. Suzhou Oriental Semiconductor | Kuangda Technology vs. Qingdao Foods Co |
| Ye Chiu vs. Nuode Investment Co | Ye Chiu vs. Shenzhen Centralcon Investment | Ye Chiu vs. Suzhou Douson Drilling | Ye Chiu vs. Zhejiang Kingland Pipeline |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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