Correlation Between Kuangda Technology and Shuhua Sports
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By analyzing existing cross correlation between Kuangda Technology Group and Shuhua Sports Co, you can compare the effects of market volatilities on Kuangda Technology and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Shuhua Sports.
Diversification Opportunities for Kuangda Technology and Shuhua Sports
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuangda and Shuhua is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Shuhua Sports go up and down completely randomly.
Pair Corralation between Kuangda Technology and Shuhua Sports
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.87 times more return on investment than Shuhua Sports. However, Kuangda Technology Group is 1.15 times less risky than Shuhua Sports. It trades about 0.02 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.01 per unit of risk. If you would invest 489.00 in Kuangda Technology Group on November 27, 2024 and sell it today you would earn a total of 26.00 from holding Kuangda Technology Group or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Shuhua Sports Co
Performance |
| Timeline |
| Kuangda Technology |
| Shuhua Sports |
Kuangda Technology and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Shuhua Sports
The main advantage of trading using opposite Kuangda Technology and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Kuangda Technology vs. BYD Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial |
| Shuhua Sports vs. Nuode Investment Co | Shuhua Sports vs. Xiamen Insight Investment | Shuhua Sports vs. Great Sun Foods Co | Shuhua Sports vs. Xiwang Foodstuffs 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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