Correlation Between Kuang Chi and Xinya Electronic
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By analyzing existing cross correlation between Kuang Chi Technologies and Xinya Electronic Co, you can compare the effects of market volatilities on Kuang Chi and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Xinya Electronic.
Diversification Opportunities for Kuang Chi and Xinya Electronic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuang and Xinya is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Kuang Chi i.e., Kuang Chi and Xinya Electronic go up and down completely randomly.
Pair Corralation between Kuang Chi and Xinya Electronic
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.44 times more return on investment than Xinya Electronic. However, Kuang Chi is 1.44 times more volatile than Xinya Electronic Co. It trades about 0.22 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.07 per unit of risk. If you would invest 1,721 in Kuang Chi Technologies on September 26, 2024 and sell it today you would earn a total of 2,694 from holding Kuang Chi Technologies or generate 156.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Xinya Electronic Co
Performance |
| Timeline |
| Kuang Chi Technologies |
| Xinya Electronic |
Kuang Chi and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Xinya Electronic
The main advantage of trading using opposite Kuang Chi and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec Co |
| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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