Correlation Between Kuang Chi and East Money
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and East Money Information, you can compare the effects of market volatilities on Kuang Chi and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and East Money.
Diversification Opportunities for Kuang Chi and East Money
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuang and East is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Kuang Chi i.e., Kuang Chi and East Money go up and down completely randomly.
Pair Corralation between Kuang Chi and East Money
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.07 times more return on investment than East Money. However, Kuang Chi is 1.07 times more volatile than East Money Information. It trades about 0.07 of its potential returns per unit of risk. East Money Information is currently generating about 0.05 per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. East Money Information
Performance |
| Timeline |
| Kuang Chi Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| East Money Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kuang Chi and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and East Money
The main advantage of trading using opposite Kuang Chi and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.The idea behind Kuang Chi Technologies and East Money Information 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |