Correlation Between Kuangda Technology and Zhongtong Guomai
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By analyzing existing cross correlation between Kuangda Technology Group and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Kuangda Technology and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Zhongtong Guomai.
Diversification Opportunities for Kuangda Technology and Zhongtong Guomai
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Zhongtong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Kuangda Technology and Zhongtong Guomai
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 1.66 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, Kuangda Technology Group is 1.35 times less risky than Zhongtong Guomai. It trades about 0.03 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,019 in Zhongtong Guomai Communication on August 26, 2024 and sell it today you would earn a total of 221.00 from holding Zhongtong Guomai Communication or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Kuangda Technology |
| Zhongtong Guomai Com |
Kuangda Technology and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Zhongtong Guomai
The main advantage of trading using opposite Kuangda Technology and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology vs. G bits Network Technology |
| Zhongtong Guomai vs. Cultural Investment Holdings | Zhongtong Guomai vs. Gome Telecom Equipment | Zhongtong Guomai vs. Bus Online Co | Zhongtong Guomai vs. Holitech Technology Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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