Correlation Between Kuangda Technology and Hainan Haiqi
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By analyzing existing cross correlation between Kuangda Technology Group and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Kuangda Technology and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Hainan Haiqi.
Diversification Opportunities for Kuangda Technology and Hainan Haiqi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Hainan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Kuangda Technology and Hainan Haiqi
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.05 times more return on investment than Hainan Haiqi. However, Kuangda Technology is 1.05 times more volatile than Hainan Haiqi Transportation. It trades about 0.19 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.19 per unit of risk. If you would invest 490.00 in Kuangda Technology Group on November 27, 2024 and sell it today you would earn a total of 25.00 from holding Kuangda Technology Group or generate 5.1% 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. Hainan Haiqi Transportation
Performance |
| Timeline |
| Kuangda Technology |
| Hainan Haiqi Transpo |
Kuangda Technology and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Hainan Haiqi
The main advantage of trading using opposite Kuangda Technology and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi'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 |
| Hainan Haiqi vs. Chengtun Mining Group | Hainan Haiqi vs. Haima Automobile Group | Hainan Haiqi vs. Chongqing Changan Automobile | Hainan Haiqi vs. Tibet Huayu Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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