Correlation Between Aba Chemicals and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Kuangda Technology Group, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Kuangda Technology.
Diversification Opportunities for Aba Chemicals and Kuangda Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Kuangda is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Kuangda Technology go up and down completely randomly.
Pair Corralation between Aba Chemicals and Kuangda Technology
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Kuangda Technology. In addition to that, Aba Chemicals is 1.46 times more volatile than Kuangda Technology Group. It trades about -0.02 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 13, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Kuangda Technology Group
Performance |
| Timeline |
| Aba Chemicals Corp |
| Kuangda Technology |
Aba Chemicals and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Kuangda Technology
The main advantage of trading using opposite Aba Chemicals and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Holitech Technology Co | Aba Chemicals vs. Hangzhou Gisway Information | Aba Chemicals vs. Eyebright Medical Technology | Aba Chemicals vs. Jinhe Biotechnology Co |
| Kuangda Technology vs. Suzhou Douson Drilling | Kuangda Technology vs. Tianjin Ruixin Technology | Kuangda Technology vs. Aba Chemicals Corp | Kuangda Technology vs. Yingde Greatchem Chemicals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |