Correlation Between Kuangda Technology and Jiangsu GDK
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By analyzing existing cross correlation between Kuangda Technology Group and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Kuangda Technology and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Jiangsu GDK.
Diversification Opportunities for Kuangda Technology and Jiangsu GDK
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Kuangda Technology and Jiangsu GDK
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.34 times more return on investment than Jiangsu GDK. However, Kuangda Technology is 1.34 times more volatile than Jiangsu GDK Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.03 per unit of risk. If you would invest 572.00 in Kuangda Technology Group on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Kuangda Technology Group or generate 1.57% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Kuangda Technology |
| Jiangsu GDK Biotechnology |
Kuangda Technology and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Jiangsu GDK
The main advantage of trading using opposite Kuangda Technology and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK'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 |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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