Correlation Between Kuang Chi and LianChuang Electronic
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By analyzing existing cross correlation between Kuang Chi Technologies and LianChuang Electronic Technology, you can compare the effects of market volatilities on Kuang Chi and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and LianChuang Electronic.
Diversification Opportunities for Kuang Chi and LianChuang Electronic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and LianChuang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Kuang Chi i.e., Kuang Chi and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Kuang Chi and LianChuang Electronic
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.9 times more return on investment than LianChuang Electronic. However, Kuang Chi Technologies is 1.11 times less risky than LianChuang Electronic. It trades about 0.22 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.09 per unit of risk. If you would invest 1,721 in Kuang Chi Technologies on September 27, 2024 and sell it today you would earn a total of 2,694 from holding Kuang Chi Technologies or generate 156.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Kuang Chi Technologies |
| LianChuang Electronic |
Kuang Chi and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and LianChuang Electronic
The main advantage of trading using opposite Kuang Chi and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec Co |
| LianChuang Electronic vs. GRG Banking Equipment | LianChuang Electronic vs. NBTM New Materials | LianChuang Electronic vs. Jinhui Liquor Co | LianChuang Electronic vs. Orinko Advanced Plastics |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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