Correlation Between Kuangda Technology and Guangdong Marubi
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By analyzing existing cross correlation between Kuangda Technology Group and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Kuangda Technology and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Guangdong Marubi.
Diversification Opportunities for Kuangda Technology and Guangdong Marubi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuangda and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Kuangda Technology and Guangdong Marubi
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.95 times more return on investment than Guangdong Marubi. However, Kuangda Technology Group is 1.06 times less risky than Guangdong Marubi. It trades about 0.01 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.01 per unit of risk. If you would invest 539.00 in Kuangda Technology Group on August 25, 2024 and sell it today you would lose (11.00) from holding Kuangda Technology Group or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Kuangda Technology |
| Guangdong Marubi Bio |
Kuangda Technology and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Guangdong Marubi
The main advantage of trading using opposite Kuangda Technology and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi'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 |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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