Correlation Between Kuang Chi and Super Dragon
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By analyzing existing cross correlation between Kuang Chi Technologies and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Kuang Chi and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Super Dragon.
Diversification Opportunities for Kuang Chi and Super Dragon
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Super is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Kuang Chi i.e., Kuang Chi and Super Dragon go up and down completely randomly.
Pair Corralation between Kuang Chi and Super Dragon
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Super Dragon. In addition to that, Kuang Chi is 1.06 times more volatile than Super Dragon Engineering Plastics. It trades about -0.18 of its total potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.17 per unit of volatility. If you would invest 3,659 in Super Dragon Engineering Plastics on September 13, 2024 and sell it today you would earn a total of 442.00 from holding Super Dragon Engineering Plastics or generate 12.08% 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. Super Dragon Engineering Plast
Performance |
| Timeline |
| Kuang Chi Technologies |
| Super Dragon Enginee |
Kuang Chi and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Super Dragon
The main advantage of trading using opposite Kuang Chi and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
| Super Dragon vs. Zhejiang JIULI Hi tech | Super Dragon vs. Qilu Bank Co | Super Dragon vs. Kuang Chi Technologies | Super Dragon vs. Guangdong Shenglu Telecommunication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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