Correlation Between Kuang Chi and Jiangsu GDK
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By analyzing existing cross correlation between Kuang Chi Technologies and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Kuang Chi and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jiangsu GDK.
Diversification Opportunities for Kuang Chi and Jiangsu GDK
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Jiangsu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Kuang Chi i.e., Kuang Chi and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Kuang Chi and Jiangsu GDK
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.35 times more return on investment than Jiangsu GDK. However, Kuang Chi is 1.35 times more volatile than Jiangsu GDK Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.46 per unit of risk. If you would invest 4,152 in Kuang Chi Technologies on October 11, 2024 and sell it today you would earn a total of 27.00 from holding Kuang Chi Technologies or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Kuang Chi Technologies |
| Jiangsu GDK Biotechnology |
Kuang Chi and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Jiangsu GDK
The main advantage of trading using opposite Kuang Chi and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Kuang Chi vs. Chengtun Mining Group | Kuang Chi vs. Jiangxi Naipu Mining | Kuang Chi vs. Hainan Mining Co | Kuang Chi vs. Fujian Oriental Silver |
| Jiangsu GDK vs. Southern PublishingMedia Co | Jiangsu GDK vs. Guangdong Xiongsu Technology | Jiangsu GDK vs. Smartgiant Technology Co | Jiangsu GDK vs. Tianshui Huatian 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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