Correlation Between Kuangda Technology and Zhengping RoadBridge
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By analyzing existing cross correlation between Kuangda Technology Group and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Kuangda Technology and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Zhengping RoadBridge.
Diversification Opportunities for Kuangda Technology and Zhengping RoadBridge
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuangda and Zhengping is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Kuangda Technology and Zhengping RoadBridge
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.43 times less risky than Zhengping RoadBridge. The stock trades about -0.04 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 305.00 in Zhengping RoadBridge Constr on October 30, 2024 and sell it today you would earn a total of 32.00 from holding Zhengping RoadBridge Constr or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Kuangda Technology |
| Zhengping RoadBridge |
Kuangda Technology and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Zhengping RoadBridge
The main advantage of trading using opposite Kuangda Technology and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
| Zhengping RoadBridge vs. Tonghua Grape Wine | Zhengping RoadBridge vs. Thinkingdom Media Group | Zhengping RoadBridge vs. Shuhua Sports Co | Zhengping RoadBridge vs. Duzhe Publishing Media |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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