Correlation Between Kuang Chi and Northking Information
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By analyzing existing cross correlation between Kuang Chi Technologies and Northking Information Technology, you can compare the effects of market volatilities on Kuang Chi and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Northking Information.
Diversification Opportunities for Kuang Chi and Northking Information
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Northking is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Kuang Chi i.e., Kuang Chi and Northking Information go up and down completely randomly.
Pair Corralation between Kuang Chi and Northking Information
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.2 times more return on investment than Northking Information. However, Kuang Chi is 1.2 times more volatile than Northking Information Technology. It trades about 0.32 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.18 per unit of risk. If you would invest 1,716 in Kuang Chi Technologies on September 4, 2024 and sell it today you would earn a total of 2,322 from holding Kuang Chi Technologies or generate 135.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Northking Information Technolo
Performance |
| Timeline |
| Kuang Chi Technologies |
| Northking Information |
Kuang Chi and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Northking Information
The main advantage of trading using opposite Kuang Chi and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Kuang Chi vs. Shaanxi Beiyuan Chemical | Kuang Chi vs. Wuxi Chemical Equipment | Kuang Chi vs. Zhongshan Broad Ocean Motor | Kuang Chi vs. Ningxia Younglight Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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