Correlation Between Kuang Chi and Sinofibers Technology
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By analyzing existing cross correlation between Kuang Chi Technologies and Sinofibers Technology Co, you can compare the effects of market volatilities on Kuang Chi and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Sinofibers Technology.
Diversification Opportunities for Kuang Chi and Sinofibers Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Sinofibers is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Kuang Chi i.e., Kuang Chi and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Kuang Chi and Sinofibers Technology
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.08 times more return on investment than Sinofibers Technology. However, Kuang Chi is 1.08 times more volatile than Sinofibers Technology Co. It trades about 0.22 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.09 per unit of risk. If you would invest 1,721 in Kuang Chi Technologies on September 27, 2024 and sell it today you would earn a total of 2,694 from holding Kuang Chi Technologies or generate 156.54% 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. Sinofibers Technology Co
Performance |
| Timeline |
| Kuang Chi Technologies |
| Sinofibers Technology |
Kuang Chi and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Sinofibers Technology
The main advantage of trading using opposite Kuang Chi and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec Co |
| Sinofibers Technology vs. RoadMain T Co | Sinofibers Technology vs. Jilin Jlu Communication | Sinofibers Technology vs. Xinjiang Communications Construction | Sinofibers Technology vs. Haima Automobile 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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