Correlation Between Kuang Chi and Hubeiyichang Transportation
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By analyzing existing cross correlation between Kuang Chi Technologies and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Kuang Chi and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Hubeiyichang Transportation.
Diversification Opportunities for Kuang Chi and Hubeiyichang Transportation
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuang and Hubeiyichang is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Kuang Chi i.e., Kuang Chi and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Kuang Chi and Hubeiyichang Transportation
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.71 times more return on investment than Hubeiyichang Transportation. However, Kuang Chi is 1.71 times more volatile than Hubeiyichang Transportation Group. It trades about 0.03 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.05 per unit of risk. If you would invest 4,005 in Kuang Chi Technologies on October 26, 2024 and sell it today you would earn a total of 55.00 from holding Kuang Chi Technologies or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Kuang Chi Technologies |
| Hubeiyichang Transportation |
Kuang Chi and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Hubeiyichang Transportation
The main advantage of trading using opposite Kuang Chi and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Jiangsu Pacific Quartz | Kuang Chi vs. Shenzhen Transsion Holdings | Kuang Chi vs. Beijing Roborock Technology |
| Hubeiyichang Transportation vs. China Life Insurance | Hubeiyichang Transportation vs. Cinda Securities Co | Hubeiyichang Transportation vs. Piotech Inc A | Hubeiyichang Transportation vs. Dongxing Sec Co |
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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