Correlation Between Kuangda Technology and Shanghai OPM
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By analyzing existing cross correlation between Kuangda Technology Group and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Kuangda Technology and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Shanghai OPM.
Diversification Opportunities for Kuangda Technology and Shanghai OPM
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Shanghai OPM go up and down completely randomly.
Pair Corralation between Kuangda Technology and Shanghai OPM
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.17 times more return on investment than Shanghai OPM. However, Kuangda Technology is 1.17 times more volatile than Shanghai OPM Biosciences. It trades about 0.07 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.01 per unit of risk. If you would invest 560.00 in Kuangda Technology Group on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Kuangda Technology Group or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Kuangda Technology |
| Shanghai OPM Biosciences |
Kuangda Technology and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Shanghai OPM
The main advantage of trading using opposite Kuangda Technology and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM's long position.| Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
| Shanghai OPM vs. Beijing Yanjing Brewery | Shanghai OPM vs. ZYF Lopsking Aluminum | Shanghai OPM vs. Spring Airlines Co | Shanghai OPM vs. Hefei Metalforming Mach |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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