Correlation Between Kuangda Technology and Southern PublishingMedia
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By analyzing existing cross correlation between Kuangda Technology Group and Southern PublishingMedia Co, you can compare the effects of market volatilities on Kuangda Technology and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Southern PublishingMedia.
Diversification Opportunities for Kuangda Technology and Southern PublishingMedia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuangda and Southern is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Kuangda Technology and Southern PublishingMedia
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Southern PublishingMedia. In addition to that, Kuangda Technology is 1.37 times more volatile than Southern PublishingMedia Co. It trades about -0.46 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about -0.23 per unit of volatility. If you would invest 1,585 in Southern PublishingMedia Co on October 14, 2024 and sell it today you would lose (148.00) from holding Southern PublishingMedia Co or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Kuangda Technology |
| Southern PublishingMedia |
Kuangda Technology and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Southern PublishingMedia
The main advantage of trading using opposite Kuangda Technology and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.The idea behind Kuangda Technology Group and Southern PublishingMedia Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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