Correlation Between Kuangda Technology and Keli Sensing
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By analyzing existing cross correlation between Kuangda Technology Group and Keli Sensing Technology, you can compare the effects of market volatilities on Kuangda Technology and Keli Sensing 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 Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Keli Sensing.
Diversification Opportunities for Kuangda Technology and Keli Sensing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuangda and Keli is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology 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 Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Keli Sensing go up and down completely randomly.
Pair Corralation between Kuangda Technology and Keli Sensing
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 6.31 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Kuangda Technology Group is 1.66 times less risky than Keli Sensing. It trades about 0.02 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,819 in Keli Sensing Technology on August 24, 2024 and sell it today you would earn a total of 2,836 from holding Keli Sensing Technology or generate 155.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Keli Sensing Technology
Performance |
| Timeline |
| Kuangda Technology |
| Keli Sensing Technology |
Kuangda Technology and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Keli Sensing
The main advantage of trading using opposite Kuangda Technology and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Kuangda Technology vs. Hainan Airlines Co | Kuangda Technology vs. Hefei Metalforming Mach | Kuangda Technology vs. Western Metal Materials | Kuangda Technology vs. ZYF Lopsking Aluminum |
| Keli Sensing vs. Northking Information Technology | Keli Sensing vs. Dhc Software Co | Keli Sensing vs. Olympic Circuit Technology | Keli Sensing vs. Sinofibers 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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