Correlation Between Kuang Chi and Guangzhou Shiyuan
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By analyzing existing cross correlation between Kuang Chi Technologies and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Kuang Chi and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Guangzhou Shiyuan.
Diversification Opportunities for Kuang Chi and Guangzhou Shiyuan
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Guangzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Kuang Chi i.e., Kuang Chi and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Kuang Chi and Guangzhou Shiyuan
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Guangzhou Shiyuan. In addition to that, Kuang Chi is 1.08 times more volatile than Guangzhou Shiyuan Electronic. It trades about -0.14 of its total potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.09 per unit of volatility. If you would invest 3,863 in Guangzhou Shiyuan Electronic on September 13, 2024 and sell it today you would earn a total of 219.00 from holding Guangzhou Shiyuan Electronic or generate 5.67% 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. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Kuang Chi Technologies |
| Guangzhou Shiyuan |
Kuang Chi and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Guangzhou Shiyuan
The main advantage of trading using opposite Kuang Chi and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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