Correlation Between Kuang Chi and Hunan Tyen
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By analyzing existing cross correlation between Kuang Chi Technologies and Hunan Tyen Machinery, you can compare the effects of market volatilities on Kuang Chi and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Hunan Tyen.
Diversification Opportunities for Kuang Chi and Hunan Tyen
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuang and Hunan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Kuang Chi i.e., Kuang Chi and Hunan Tyen go up and down completely randomly.
Pair Corralation between Kuang Chi and Hunan Tyen
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Hunan Tyen. In addition to that, Kuang Chi is 1.22 times more volatile than Hunan Tyen Machinery. It trades about -0.07 of its total potential returns per unit of risk. Hunan Tyen Machinery is currently generating about -0.06 per unit of volatility. If you would invest 548.00 in Hunan Tyen Machinery on August 29, 2024 and sell it today you would lose (38.00) from holding Hunan Tyen Machinery or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Kuang Chi Technologies |
| Hunan Tyen Machinery |
Kuang Chi and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Hunan Tyen
The main advantage of trading using opposite Kuang Chi and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Kuang Chi vs. Mango Excellent Media | Kuang Chi vs. Chengdu B ray Media | Kuang Chi vs. Omnijoi Media Corp | Kuang Chi vs. Peoples Insurance of |
| Hunan Tyen vs. China State Construction | Hunan Tyen vs. Huafa Industrial Co | Hunan Tyen vs. China International Capital | Hunan Tyen vs. Kweichow Moutai 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 Stocks Directory module to find actively traded stocks across global markets.
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