Correlation Between Kuang Chi and Xiamen Jihong
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By analyzing existing cross correlation between Kuang Chi Technologies and Xiamen Jihong Package, you can compare the effects of market volatilities on Kuang Chi and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Xiamen Jihong.
Diversification Opportunities for Kuang Chi and Xiamen Jihong
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuang and Xiamen is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Kuang Chi i.e., Kuang Chi and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Kuang Chi and Xiamen Jihong
If you would invest 3,965 in Kuang Chi Technologies on November 7, 2024 and sell it today you would earn a total of 100.00 from holding Kuang Chi Technologies or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Xiamen Jihong Package
Performance |
| Timeline |
| Kuang Chi Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xiamen Jihong Package |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kuang Chi and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Xiamen Jihong
The main advantage of trading using opposite Kuang Chi and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.The idea behind Kuang Chi Technologies and Xiamen Jihong Package pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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