Correlation Between Kuang Chi and Chengdu Xinzhu
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By analyzing existing cross correlation between Kuang Chi Technologies and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Kuang Chi and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Chengdu Xinzhu.
Diversification Opportunities for Kuang Chi and Chengdu Xinzhu
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuang and Chengdu is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Kuang Chi i.e., Kuang Chi and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Kuang Chi and Chengdu Xinzhu
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.62 times more return on investment than Chengdu Xinzhu. However, Kuang Chi Technologies is 1.61 times less risky than Chengdu Xinzhu. It trades about 0.37 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about -0.02 per unit of risk. If you would invest 3,924 in Kuang Chi Technologies on September 28, 2024 and sell it today you would earn a total of 881.00 from holding Kuang Chi Technologies or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Kuang Chi Technologies |
| Chengdu Xinzhu RoadBridge |
Kuang Chi and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Chengdu Xinzhu
The main advantage of trading using opposite Kuang Chi and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Kuang Chi vs. Cultural Investment Holdings | Kuang Chi vs. Xiamen Jihong Package | Kuang Chi vs. Beijing Mainstreets Investment | Kuang Chi vs. Tieling Newcity Investment |
| Chengdu Xinzhu vs. Zhejiang JIULI Hi tech | Chengdu Xinzhu vs. Cicc Fund Management | Chengdu Xinzhu vs. Eastern Communications Co | Chengdu Xinzhu vs. CICC Fund Management |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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