Correlation Between Guizhou Chanhen and Kuangda Technology
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Kuangda Technology Group, you can compare the effects of market volatilities on Guizhou Chanhen and Kuangda Technology 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 Guizhou Chanhen with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Kuangda Technology.
Diversification Opportunities for Guizhou Chanhen and Kuangda Technology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guizhou and Kuangda is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Kuangda Technology go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Kuangda Technology
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Kuangda Technology. In addition to that, Guizhou Chanhen is 1.06 times more volatile than Kuangda Technology Group. It trades about 0.0 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.0 per unit of volatility. If you would invest 518.00 in Kuangda Technology Group on October 15, 2024 and sell it today you would lose (42.00) from holding Kuangda Technology Group or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Kuangda Technology Group
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Kuangda Technology |
Guizhou Chanhen and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Kuangda Technology
The main advantage of trading using opposite Guizhou Chanhen and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Guizhou Chanhen vs. Guangxi Wuzhou Communications | Guizhou Chanhen vs. Gan Yuan Foods | Guizhou Chanhen vs. Xiwang Foodstuffs Co | Guizhou Chanhen vs. Runjian Communication Co |
| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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