Correlation Between Kuang Chi and Bank of Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Bank of Communications, you can compare the effects of market volatilities on Kuang Chi and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Bank of Communications.
Diversification Opportunities for Kuang Chi and Bank of Communications
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuang and Bank is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Kuang Chi i.e., Kuang Chi and Bank of Communications go up and down completely randomly.
Pair Corralation between Kuang Chi and Bank of Communications
Assuming the 90 days trading horizon Kuang Chi is expected to generate 1.21 times less return on investment than Bank of Communications. In addition to that, Kuang Chi is 2.78 times more volatile than Bank of Communications. It trades about 0.01 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.04 per unit of volatility. If you would invest 733.00 in Bank of Communications on October 12, 2024 and sell it today you would earn a total of 7.00 from holding Bank of Communications or generate 0.95% 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. Bank of Communications
Performance |
| Timeline |
| Kuang Chi Technologies |
| Bank of Communications |
Kuang Chi and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Bank of Communications
The main advantage of trading using opposite Kuang Chi and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Kuang Chi vs. Chengtun Mining Group | Kuang Chi vs. Jiangxi Naipu Mining | Kuang Chi vs. Hainan Mining Co | Kuang Chi vs. Fujian Oriental Silver |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |