Correlation Between Kuang Chi and Shanghai Laimu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Kuang Chi and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Shanghai Laimu.
Diversification Opportunities for Kuang Chi and Shanghai Laimu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Kuang Chi i.e., Kuang Chi and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Kuang Chi and Shanghai Laimu
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Shanghai Laimu. In addition to that, Kuang Chi is 1.25 times more volatile than Shanghai Laimu Electronics. It trades about -0.18 of its total potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.05 per unit of volatility. If you would invest 806.00 in Shanghai Laimu Electronics on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Shanghai Laimu Electronics or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Shanghai Laimu Electronics
Performance |
| Timeline |
| Kuang Chi Technologies |
| Shanghai Laimu Elect |
Kuang Chi and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Shanghai Laimu
The main advantage of trading using opposite Kuang Chi and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu's long position.| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
| Shanghai Laimu vs. Jiujiang Shanshui Technology | Shanghai Laimu vs. Kuang Chi Technologies | Shanghai Laimu vs. Xiwang Foodstuffs Co | Shanghai Laimu vs. Guilin Seamild Foods |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |