Correlation Between Guizhou Chanhen and Kuang Chi
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Kuang Chi Technologies, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Kuang Chi.
Diversification Opportunities for Guizhou Chanhen and Kuang Chi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guizhou and Kuang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 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 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 Guizhou Chanhen i.e., Guizhou Chanhen and Kuang Chi go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Kuang Chi
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou Chanhen Chemical is 1.69 times less risky than Kuang Chi. The stock trades about -0.03 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 4,013 in Kuang Chi Technologies on October 30, 2024 and sell it today you would earn a total of 52.00 from holding Kuang Chi Technologies or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Kuang Chi Technologies
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Kuang Chi Technologies |
Guizhou Chanhen and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Kuang Chi
The main advantage of trading using opposite Guizhou Chanhen and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Harbin Air Conditioning | Guizhou Chanhen vs. Jiangsu Phoenix Publishing | Guizhou Chanhen vs. Air China Ltd | Guizhou Chanhen vs. COL Digital Publishing |
| Kuang Chi vs. Allied Machinery Co | Kuang Chi vs. Huasi Agricultural Development | Kuang Chi vs. COL Digital Publishing | Kuang Chi vs. Lutian Machinery 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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