Correlation Between Kuang Chi and Guangdong Skychem
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By analyzing existing cross correlation between Kuang Chi Technologies and Guangdong Skychem Technology, you can compare the effects of market volatilities on Kuang Chi and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Guangdong Skychem.
Diversification Opportunities for Kuang Chi and Guangdong Skychem
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kuang and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Kuang Chi i.e., Kuang Chi and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Kuang Chi and Guangdong Skychem
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.95 times more return on investment than Guangdong Skychem. However, Kuang Chi Technologies is 1.05 times less risky than Guangdong Skychem. It trades about 0.22 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.21 per unit of risk. If you would invest 1,721 in Kuang Chi Technologies on September 27, 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Kuang Chi Technologies |
| Guangdong Skychem |
Kuang Chi and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Guangdong Skychem
The main advantage of trading using opposite Kuang Chi and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem'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 |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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