Correlation Between Guangzhou Ruoyuchen and Kuangda Technology
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Kuangda Technology Group, you can compare the effects of market volatilities on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Kuangda Technology.
Diversification Opportunities for Guangzhou Ruoyuchen and Kuangda Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Kuangda is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen Information 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 Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Kuangda Technology go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Kuangda Technology
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.48 times more return on investment than Kuangda Technology. However, Guangzhou Ruoyuchen is 1.48 times more volatile than Kuangda Technology Group. It trades about 0.05 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.03 per unit of risk. If you would invest 1,293 in Guangzhou Ruoyuchen Information on September 12, 2024 and sell it today you would earn a total of 961.00 from holding Guangzhou Ruoyuchen Information or generate 74.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Kuangda Technology Group
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Kuangda Technology |
Guangzhou Ruoyuchen and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Kuangda Technology
The main advantage of trading using opposite Guangzhou Ruoyuchen and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen 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.| Guangzhou Ruoyuchen vs. Kweichow Moutai Co | Guangzhou Ruoyuchen vs. Shenzhen Mindray Bio Medical | Guangzhou Ruoyuchen vs. G bits Network Technology | Guangzhou Ruoyuchen vs. Beijing Roborock Technology |
| Kuangda Technology vs. Lutian Machinery Co | Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. Bank of China | Kuangda Technology vs. Gansu Jiu Steel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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