Correlation Between Kuang Chi and Jiujiang Shanshui
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By analyzing existing cross correlation between Kuang Chi Technologies and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Kuang Chi and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jiujiang Shanshui.
Diversification Opportunities for Kuang Chi and Jiujiang Shanshui
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Jiujiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Kuang Chi i.e., Kuang Chi and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Kuang Chi and Jiujiang Shanshui
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Jiujiang Shanshui. In addition to that, Kuang Chi is 1.65 times more volatile than Jiujiang Shanshui Technology. It trades about -0.13 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.08 per unit of volatility. If you would invest 1,634 in Jiujiang Shanshui Technology on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Jiujiang Shanshui Technology or generate 3.24% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Kuang Chi Technologies |
| Jiujiang Shanshui |
Kuang Chi and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Jiujiang Shanshui
The main advantage of trading using opposite Kuang Chi and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui'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 |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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