Correlation Between Kuang Chi and Jiangxi JDL
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By analyzing existing cross correlation between Kuang Chi Technologies and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Kuang Chi and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jiangxi JDL.
Diversification Opportunities for Kuang Chi and Jiangxi JDL
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Jiangxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Kuang Chi i.e., Kuang Chi and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Kuang Chi and Jiangxi JDL
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Jiangxi JDL. In addition to that, Kuang Chi is 2.24 times more volatile than Jiangxi JDL Environmental. It trades about -0.18 of its total potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.02 per unit of volatility. If you would invest 1,228 in Jiangxi JDL Environmental on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Jiangxi JDL Environmental or generate 0.41% 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. Jiangxi JDL Environmental
Performance |
| Timeline |
| Kuang Chi Technologies |
| Jiangxi JDL Environmental |
Kuang Chi and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Jiangxi JDL
The main advantage of trading using opposite Kuang Chi and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL'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 |
| Jiangxi JDL vs. Qijing Machinery | Jiangxi JDL vs. Kingclean Electric Co | Jiangxi JDL vs. Gan Yuan Foods | Jiangxi JDL vs. Youyou Foods 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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