Correlation Between Kuang Chi and Zhejiang Tailin
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By analyzing existing cross correlation between Kuang Chi Technologies and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Kuang Chi and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Zhejiang Tailin.
Diversification Opportunities for Kuang Chi and Zhejiang Tailin
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kuang and Zhejiang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Kuang Chi i.e., Kuang Chi and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Kuang Chi and Zhejiang Tailin
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.44 times more return on investment than Zhejiang Tailin. However, Kuang Chi is 1.44 times more volatile than Zhejiang Tailin Bioengineering. It trades about 0.05 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.14 per unit of risk. If you would invest 4,040 in Kuang Chi Technologies on October 18, 2024 and sell it today you would earn a total of 89.00 from holding Kuang Chi Technologies or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Zhejiang Tailin Bioengineering
Performance |
Timeline |
Kuang Chi Technologies |
Zhejiang Tailin Bioe |
Kuang Chi and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Zhejiang Tailin
The main advantage of trading using opposite Kuang Chi and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guangzhou Jointas Chemical | Kuang Chi vs. Soyea Technology Co | Kuang Chi vs. Maxvision Technology Corp |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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