Correlation Between Kuang Chi and Metro Investment
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By analyzing existing cross correlation between Kuang Chi Technologies and Metro Investment Development, you can compare the effects of market volatilities on Kuang Chi and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Metro Investment.
Diversification Opportunities for Kuang Chi and Metro Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuang and Metro is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Kuang Chi i.e., Kuang Chi and Metro Investment go up and down completely randomly.
Pair Corralation between Kuang Chi and Metro Investment
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.1 times more return on investment than Metro Investment. However, Kuang Chi is 1.1 times more volatile than Metro Investment Development. It trades about 0.03 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.04 per unit of risk. If you would invest 4,396 in Kuang Chi Technologies on October 23, 2024 and sell it today you would earn a total of 38.00 from holding Kuang Chi Technologies or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Metro Investment Development
Performance |
| Timeline |
| Kuang Chi Technologies |
| Metro Investment Dev |
Kuang Chi and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Metro Investment
The main advantage of trading using opposite Kuang Chi and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Kuang Chi vs. Dawning Information Industry | Kuang Chi vs. Digital China Information | Kuang Chi vs. Shanghai Action Education | Kuang Chi vs. COL Digital Publishing |
| Metro Investment vs. Eastern Air Logistics | Metro Investment vs. Great Sun Foods Co | Metro Investment vs. Jiahe Foods Industry | Metro Investment vs. Holitech Technology Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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