Correlation Between Kuang Chi and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Kuang Chi Technologies and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Kuang Chi and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and HUAQIN TECHNOLOGY.
Diversification Opportunities for Kuang Chi and HUAQIN TECHNOLOGY
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuang and HUAQIN is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Kuang Chi i.e., Kuang Chi and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Kuang Chi and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.07 times more return on investment than HUAQIN TECHNOLOGY. However, Kuang Chi is 1.07 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about 0.07 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.04 per unit of risk. If you would invest 1,811 in Kuang Chi Technologies on October 16, 2024 and sell it today you would earn a total of 2,234 from holding Kuang Chi Technologies or generate 123.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.8% |
| Values | Daily Returns |
Kuang Chi Technologies vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Kuang Chi Technologies |
| HUAQIN TECHNOLOGY LTD |
Kuang Chi and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Kuang Chi and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Kuang Chi vs. China World Trade | Kuang Chi vs. XiaMen HongXin Electron tech | Kuang Chi vs. Sharetronic Data Technology | Kuang Chi vs. China Eastern Airlines |
| HUAQIN TECHNOLOGY vs. GRG Banking Equipment | HUAQIN TECHNOLOGY vs. Kuang Chi Technologies | HUAQIN TECHNOLOGY vs. Qilu Bank Co | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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