Correlation Between Hubeiyichang Transportation and Kuang Chi
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Kuang Chi Technologies, you can compare the effects of market volatilities on Hubeiyichang Transportation and Kuang Chi 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 Hubeiyichang Transportation with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Kuang Chi.
Diversification Opportunities for Hubeiyichang Transportation and Kuang Chi
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubeiyichang and Kuang is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Kuang Chi go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Kuang Chi
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Hubeiyichang Transportation Group is 1.71 times less risky than Kuang Chi. The stock trades about -0.05 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,005 in Kuang Chi Technologies on October 26, 2024 and sell it today you would earn a total of 55.00 from holding Kuang Chi Technologies or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Kuang Chi Technologies
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Kuang Chi Technologies |
Hubeiyichang Transportation and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Kuang Chi
The main advantage of trading using opposite Hubeiyichang Transportation and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Hubeiyichang Transportation vs. China Life Insurance | Hubeiyichang Transportation vs. Cinda Securities Co | Hubeiyichang Transportation vs. Piotech Inc A | Hubeiyichang Transportation vs. Dongxing Sec Co |
| Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Jiangsu Pacific Quartz | Kuang Chi vs. Shenzhen Transsion Holdings | Kuang Chi vs. Beijing Roborock 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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