Correlation Between Kuangda Technology and Industrial
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By analyzing existing cross correlation between Kuangda Technology Group and Industrial and Commercial, you can compare the effects of market volatilities on Kuangda Technology and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Industrial.
Diversification Opportunities for Kuangda Technology and Industrial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kuangda and Industrial is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Industrial go up and down completely randomly.
Pair Corralation between Kuangda Technology and Industrial
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 2.49 times less return on investment than Industrial. In addition to that, Kuangda Technology is 1.94 times more volatile than Industrial and Commercial. It trades about 0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.09 per unit of volatility. If you would invest 427.00 in Industrial and Commercial on November 28, 2024 and sell it today you would earn a total of 259.00 from holding Industrial and Commercial or generate 60.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Industrial and Commercial
Performance |
| Timeline |
| Kuangda Technology |
| Industrial and Commercial |
Kuangda Technology and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Industrial
The main advantage of trading using opposite Kuangda Technology and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Kuangda Technology vs. BYD Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial |
| Industrial vs. iSoftStone Information Technology | Industrial vs. Bengang Steel Plates | Industrial vs. SI TECH Information Technology | Industrial vs. Qiming Information 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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