Correlation Between Kuang Chi and Fujian Boss
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By analyzing existing cross correlation between Kuang Chi Technologies and Fujian Boss Software, you can compare the effects of market volatilities on Kuang Chi and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Fujian Boss.
Diversification Opportunities for Kuang Chi and Fujian Boss
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Fujian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Kuang Chi i.e., Kuang Chi and Fujian Boss go up and down completely randomly.
Pair Corralation between Kuang Chi and Fujian Boss
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.6 times more return on investment than Fujian Boss. However, Kuang Chi is 1.6 times more volatile than Fujian Boss Software. It trades about -0.02 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.43 per unit of risk. If you would invest 4,167 in Kuang Chi Technologies on October 16, 2024 and sell it today you would lose (122.00) from holding Kuang Chi Technologies or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Fujian Boss Software
Performance |
| Timeline |
| Kuang Chi Technologies |
| Fujian Boss Software |
Kuang Chi and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Fujian Boss
The main advantage of trading using opposite Kuang Chi and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guizhou Chanhen Chemical | Kuang Chi vs. HeNan Splendor Science | Kuang Chi vs. China Everbright Bank |
| Fujian Boss vs. HaiXin Foods Co | Fujian Boss vs. Chengtun Mining Group | Fujian Boss vs. Shengda Mining Co | Fujian Boss vs. Jiajia Food Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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