Correlation Between Kuang Chi and Jiangxi Lianchuang
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By analyzing existing cross correlation between Kuang Chi Technologies and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Kuang Chi and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jiangxi Lianchuang.
Diversification Opportunities for Kuang Chi and Jiangxi Lianchuang
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuang and Jiangxi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Kuang Chi i.e., Kuang Chi and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Kuang Chi and Jiangxi Lianchuang
Assuming the 90 days trading horizon Kuang Chi is expected to generate 6.92 times less return on investment than Jiangxi Lianchuang. But when comparing it to its historical volatility, Kuang Chi Technologies is 1.07 times less risky than Jiangxi Lianchuang. It trades about 0.01 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,944 in Jiangxi Lianchuang Opto electronic on December 6, 2024 and sell it today you would earn a total of 712.00 from holding Jiangxi Lianchuang Opto electronic or generate 14.4% 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. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Kuang Chi Technologies |
| Jiangxi Lianchuang Opto |
Kuang Chi and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Jiangxi Lianchuang
The main advantage of trading using opposite Kuang Chi and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Kuang Chi vs. Weihai Honglin Electronic | Kuang Chi vs. Zhengzhou Coal Mining | Kuang Chi vs. Rongcheer Industrial Technology | Kuang Chi vs. Guangdong Ellington Electronics |
| Jiangxi Lianchuang vs. Beijing Kaiwen Education | Jiangxi Lianchuang vs. Duzhe Publishing Media | Jiangxi Lianchuang vs. Offcn Education Technology | Jiangxi Lianchuang vs. Suzhou Douson Drilling |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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