Correlation Between Kuang Chi and Porton Fine
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By analyzing existing cross correlation between Kuang Chi Technologies and Porton Fine Chemicals, you can compare the effects of market volatilities on Kuang Chi and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Porton Fine.
Diversification Opportunities for Kuang Chi and Porton Fine
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuang and Porton is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Kuang Chi i.e., Kuang Chi and Porton Fine go up and down completely randomly.
Pair Corralation between Kuang Chi and Porton Fine
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.11 times more return on investment than Porton Fine. However, Kuang Chi is 1.11 times more volatile than Porton Fine Chemicals. It trades about 0.03 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.07 per unit of risk. If you would invest 4,013 in Kuang Chi Technologies on October 30, 2024 and sell it today you would earn a total of 52.00 from holding Kuang Chi Technologies or generate 1.3% 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. Porton Fine Chemicals
Performance |
| Timeline |
| Kuang Chi Technologies |
| Porton Fine Chemicals |
Kuang Chi and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Porton Fine
The main advantage of trading using opposite Kuang Chi and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Kuang Chi vs. Allied Machinery Co | Kuang Chi vs. Huasi Agricultural Development | Kuang Chi vs. COL Digital Publishing | Kuang Chi vs. Lutian Machinery Co |
| Porton Fine vs. Ming Yang Smart | Porton Fine vs. 159681 | Porton Fine vs. 159005 | Porton Fine vs. Loctek Ergonomic 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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