Correlation Between Kuang Chi and Guangdong Xiongsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Kuang Chi and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Guangdong Xiongsu.
Diversification Opportunities for Kuang Chi and Guangdong Xiongsu
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Guangdong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Kuang Chi i.e., Kuang Chi and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Kuang Chi and Guangdong Xiongsu
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.04 times more return on investment than Guangdong Xiongsu. However, Kuang Chi is 1.04 times more volatile than Guangdong Xiongsu Technology. It trades about 0.07 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.06 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. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Kuang Chi Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guangdong Xiongsu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kuang Chi and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Guangdong Xiongsu
The main advantage of trading using opposite Kuang Chi and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.The idea behind Kuang Chi Technologies and Guangdong Xiongsu Technology 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |