Correlation Between Kuang Chi and Tongyu Communication
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By analyzing existing cross correlation between Kuang Chi Technologies and Tongyu Communication, you can compare the effects of market volatilities on Kuang Chi and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Tongyu Communication.
Diversification Opportunities for Kuang Chi and Tongyu Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuang and Tongyu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Kuang Chi i.e., Kuang Chi and Tongyu Communication go up and down completely randomly.
Pair Corralation between Kuang Chi and Tongyu Communication
Assuming the 90 days trading horizon Kuang Chi is expected to generate 2.3 times less return on investment than Tongyu Communication. In addition to that, Kuang Chi is 1.27 times more volatile than Tongyu Communication. It trades about 0.07 of its total potential returns per unit of risk. Tongyu Communication is currently generating about 0.19 per unit of volatility. If you would invest 1,337 in Tongyu Communication on November 5, 2024 and sell it today you would earn a total of 94.00 from holding Tongyu Communication or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Tongyu Communication
Performance |
| Timeline |
| Kuang Chi Technologies |
| Tongyu Communication |
Kuang Chi and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Tongyu Communication
The main advantage of trading using opposite Kuang Chi and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Kuang Chi vs. Holitech Technology Co | Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Qiaoyin Environmental Tech | Kuang Chi vs. Fujian Nanwang Environment |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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