Correlation Between Kuangda Technology and G Bits
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By analyzing existing cross correlation between Kuangda Technology Group and G bits Network Technology, you can compare the effects of market volatilities on Kuangda Technology and G Bits 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 G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and G Bits.
Diversification Opportunities for Kuangda Technology and G Bits
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuangda and 603444 is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and G Bits go up and down completely randomly.
Pair Corralation between Kuangda Technology and G Bits
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.81 times more return on investment than G Bits. However, Kuangda Technology Group is 1.24 times less risky than G Bits. It trades about 0.0 of its potential returns per unit of risk. G bits Network Technology is currently generating about -0.02 per unit of risk. If you would invest 518.00 in Kuangda Technology Group on October 16, 2024 and sell it today you would lose (42.00) from holding Kuangda Technology Group or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kuangda Technology Group vs. G bits Network Technology
Performance |
| Timeline |
| Kuangda Technology |
| G bits Network |
Kuangda Technology and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and G Bits
The main advantage of trading using opposite Kuangda Technology and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.The idea behind Kuangda Technology Group and G bits Network Technology 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.
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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