Correlation Between Kuang Chi and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Kuangda Technology Group, you can compare the effects of market volatilities on Kuang Chi and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Kuangda Technology.
Diversification Opportunities for Kuang Chi and Kuangda Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuang and Kuangda is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Kuang Chi i.e., Kuang Chi and Kuangda Technology go up and down completely randomly.
Pair Corralation between Kuang Chi and Kuangda Technology
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.34 times more return on investment than Kuangda Technology. However, Kuang Chi is 1.34 times more volatile than Kuangda Technology Group. It trades about 0.14 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.04 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. Kuangda Technology Group
Performance |
| Timeline |
| Kuang Chi Technologies |
| Kuangda Technology |
Kuang Chi and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Kuangda Technology
The main advantage of trading using opposite Kuang Chi and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |