Correlation Between Kuang Chi and Fujian Newland
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Fujian Newland Computer, you can compare the effects of market volatilities on Kuang Chi and Fujian Newland 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 Kuang Chi with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Fujian Newland.
Diversification Opportunities for Kuang Chi and Fujian Newland
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuang and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Kuang Chi 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 Kuang Chi Technologies are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Kuang Chi i.e., Kuang Chi and Fujian Newland go up and down completely randomly.
Pair Corralation between Kuang Chi and Fujian Newland
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Fujian Newland. In addition to that, Kuang Chi is 1.11 times more volatile than Fujian Newland Computer. It trades about -0.13 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.0 per unit of volatility. If you would invest 2,126 in Fujian Newland Computer on September 15, 2024 and sell it today you would lose (26.00) from holding Fujian Newland Computer or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Fujian Newland Computer
Performance |
| Timeline |
| Kuang Chi Technologies |
| Fujian Newland Computer |
Kuang Chi and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Fujian Newland
The main advantage of trading using opposite Kuang Chi and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |