Correlation Between Suzhou SLAC and Kuangda Technology
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By analyzing existing cross correlation between Suzhou SLAC Precision and Kuangda Technology Group, you can compare the effects of market volatilities on Suzhou SLAC 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 Suzhou SLAC with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou SLAC and Kuangda Technology.
Diversification Opportunities for Suzhou SLAC and Kuangda Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Kuangda is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou SLAC Precision and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Suzhou SLAC 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 Suzhou SLAC Precision 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 Suzhou SLAC i.e., Suzhou SLAC and Kuangda Technology go up and down completely randomly.
Pair Corralation between Suzhou SLAC and Kuangda Technology
Assuming the 90 days trading horizon Suzhou SLAC Precision is expected to generate 1.56 times more return on investment than Kuangda Technology. However, Suzhou SLAC is 1.56 times more volatile than Kuangda Technology Group. It trades about 0.11 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.07 per unit of risk. If you would invest 1,098 in Suzhou SLAC Precision on September 13, 2024 and sell it today you would earn a total of 130.00 from holding Suzhou SLAC Precision or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou SLAC Precision vs. Kuangda Technology Group
Performance |
| Timeline |
| Suzhou SLAC Precision |
| Kuangda Technology |
Suzhou SLAC and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou SLAC and Kuangda Technology
The main advantage of trading using opposite Suzhou SLAC and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou SLAC 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.| Suzhou SLAC vs. StarPower Semiconductor | Suzhou SLAC vs. Dongguan Aohai Technology | Suzhou SLAC vs. Olympic Circuit Technology | Suzhou SLAC vs. Ningbo Ligong Online |
| Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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