Correlation Between Kuang Chi and Hangzhou Guotai
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By analyzing existing cross correlation between Kuang Chi Technologies and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on Kuang Chi and Hangzhou Guotai 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 Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Hangzhou Guotai.
Diversification Opportunities for Kuang Chi and Hangzhou Guotai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuang and Hangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of Kuang Chi i.e., Kuang Chi and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between Kuang Chi and Hangzhou Guotai
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Hangzhou Guotai. In addition to that, Kuang Chi is 1.49 times more volatile than Hangzhou Guotai Environmental. It trades about -0.07 of its total potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.19 per unit of volatility. If you would invest 2,854 in Hangzhou Guotai Environmental on October 26, 2024 and sell it today you would earn a total of 309.00 from holding Hangzhou Guotai Environmental or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| Kuang Chi Technologies |
| Hangzhou Guotai Envi |
Kuang Chi and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Hangzhou Guotai
The main advantage of trading using opposite Kuang Chi and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Hangzhou Guotai 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 Hangzhou Guotai will offset losses from the drop in Hangzhou Guotai's long position.| Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Jiangsu Pacific Quartz | Kuang Chi vs. Shenzhen Transsion Holdings | Kuang Chi vs. Beijing Roborock Technology |
| Hangzhou Guotai vs. Sportsoul Co Ltd | Hangzhou Guotai vs. Shanghai Xinhua Media | Hangzhou Guotai vs. Southern PublishingMedia Co | Hangzhou Guotai vs. Heilongjiang Publishing Media |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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