Correlation Between Kuang Chi and Dongguan Tarry
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By analyzing existing cross correlation between Kuang Chi Technologies and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Kuang Chi and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Dongguan Tarry.
Diversification Opportunities for Kuang Chi and Dongguan Tarry
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuang and Dongguan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Kuang Chi i.e., Kuang Chi and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Kuang Chi and Dongguan Tarry
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.92 times more return on investment than Dongguan Tarry. However, Kuang Chi Technologies is 1.08 times less risky than Dongguan Tarry. It trades about 0.07 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.03 per unit of risk. If you would invest 1,819 in Kuang Chi Technologies on November 2, 2024 and sell it today you would earn a total of 2,246 from holding Kuang Chi Technologies or generate 123.47% 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. Dongguan Tarry Electronics
Performance |
| Timeline |
| Kuang Chi Technologies |
| Dongguan Tarry Elect |
Kuang Chi and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Dongguan Tarry
The main advantage of trading using opposite Kuang Chi and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Kuang Chi vs. Tongyu Communication | Kuang Chi vs. Guangxi Wuzhou Communications | Kuang Chi vs. Zhejiang Construction Investment | Kuang Chi vs. Eastern Communications Co |
| Dongguan Tarry vs. Shenzhen Bioeasy Biotechnology | Dongguan Tarry vs. Liaoning Chengda Biotechnology | Dongguan Tarry vs. Zhejiang Qianjiang Motorcycle | Dongguan Tarry vs. Fujian Wanchen Biotechnology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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