Correlation Between Kuang Chi and HanS Laser
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By analyzing existing cross correlation between Kuang Chi Technologies and HanS Laser Tech, you can compare the effects of market volatilities on Kuang Chi and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and HanS Laser.
Diversification Opportunities for Kuang Chi and HanS Laser
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuang and HanS is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Kuang Chi i.e., Kuang Chi and HanS Laser go up and down completely randomly.
Pair Corralation between Kuang Chi and HanS Laser
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.4 times more return on investment than HanS Laser. However, Kuang Chi is 1.4 times more volatile than HanS Laser Tech. It trades about 0.14 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.06 per unit of risk. If you would invest 1,374 in Kuang Chi Technologies on September 14, 2024 and sell it today you would earn a total of 2,899 from holding Kuang Chi Technologies or generate 210.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. HanS Laser Tech
Performance |
| Timeline |
| Kuang Chi Technologies |
| HanS Laser Tech |
Kuang Chi and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and HanS Laser
The main advantage of trading using opposite Kuang Chi and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser'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 |
| HanS Laser vs. Industrial and Commercial | HanS Laser vs. Kweichow Moutai Co | HanS Laser vs. Agricultural Bank of | HanS Laser vs. China Mobile Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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