Correlation Between Kuangda Technology and Niutech Environment
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By analyzing existing cross correlation between Kuangda Technology Group and Niutech Environment Technology, you can compare the effects of market volatilities on Kuangda Technology and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Niutech Environment.
Diversification Opportunities for Kuangda Technology and Niutech Environment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Niutech is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Niutech Environment go up and down completely randomly.
Pair Corralation between Kuangda Technology and Niutech Environment
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Niutech Environment. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.0 times less risky than Niutech Environment. The stock trades about -0.05 of its potential returns per unit of risk. The Niutech Environment Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,297 in Niutech Environment Technology on November 30, 2024 and sell it today you would earn a total of 94.00 from holding Niutech Environment Technology or generate 7.25% 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. Niutech Environment Technology
Performance |
| Timeline |
| Kuangda Technology |
| Niutech Environment |
Kuangda Technology and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Niutech Environment
The main advantage of trading using opposite Kuangda Technology and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Kuangda Technology vs. Zhejiang Publishing Media | Kuangda Technology vs. VeriSilicon Microelectronics Shanghai | Kuangda Technology vs. COL Digital Publishing | Kuangda Technology vs. Porton Fine Chemicals |
| Niutech Environment vs. Beijing Watertek Information | Niutech Environment vs. Anshan Senyuan Road | Niutech Environment vs. RoadMain T Co | Niutech Environment vs. Jinxiandai Information Industry |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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