Correlation Between Kuangda Technology and Leaguer Shenzhen
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By analyzing existing cross correlation between Kuangda Technology Group and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Kuangda Technology and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Leaguer Shenzhen.
Diversification Opportunities for Kuangda Technology and Leaguer Shenzhen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Leaguer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Kuangda Technology and Leaguer Shenzhen
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.73 times more return on investment than Leaguer Shenzhen. However, Kuangda Technology Group is 1.36 times less risky than Leaguer Shenzhen. It trades about 0.03 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.02 per unit of risk. If you would invest 486.00 in Kuangda Technology Group on September 12, 2024 and sell it today you would earn a total of 95.00 from holding Kuangda Technology Group or generate 19.55% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Kuangda Technology |
| Leaguer Shenzhen Mic |
Kuangda Technology and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Leaguer Shenzhen
The main advantage of trading using opposite Kuangda Technology and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Kuangda Technology vs. Lutian Machinery Co | Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. Bank of China | Kuangda Technology vs. Gansu Jiu Steel |
| Leaguer Shenzhen vs. Gansu Jiu Steel | Leaguer Shenzhen vs. Shandong Mining Machinery | Leaguer Shenzhen vs. Aba Chemicals Corp | Leaguer Shenzhen vs. BlueFocus Communication Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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