Correlation Between Kuangda Technology and Fuzhou Rockchip
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By analyzing existing cross correlation between Kuangda Technology Group and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Kuangda Technology and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Fuzhou Rockchip.
Diversification Opportunities for Kuangda Technology and Fuzhou Rockchip
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuangda and Fuzhou is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Kuangda Technology and Fuzhou Rockchip
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Fuzhou Rockchip. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 2.38 times less risky than Fuzhou Rockchip. The stock trades about -0.41 of its potential returns per unit of risk. The Fuzhou Rockchip Electronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,810 in Fuzhou Rockchip Electronics on October 16, 2024 and sell it today you would earn a total of 3,290 from holding Fuzhou Rockchip Electronics or generate 37.34% 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. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Kuangda Technology |
| Fuzhou Rockchip Elec |
Kuangda Technology and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Fuzhou Rockchip
The main advantage of trading using opposite Kuangda Technology and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff Co |
| Fuzhou Rockchip vs. Hainan Airlines Co | Fuzhou Rockchip vs. Sinofibers Technology Co | Fuzhou Rockchip vs. Kuangda Technology Group | Fuzhou Rockchip vs. Ingenic Semiconductor |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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