Correlation Between Wuxi Xuelang and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuxi Xuelang Environmental and Kuangda Technology Group, you can compare the effects of market volatilities on Wuxi Xuelang 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 Wuxi Xuelang with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Xuelang and Kuangda Technology.
Diversification Opportunities for Wuxi Xuelang and Kuangda Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuxi and Kuangda is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Xuelang Environmental and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Wuxi Xuelang 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 Wuxi Xuelang Environmental 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 Wuxi Xuelang i.e., Wuxi Xuelang and Kuangda Technology go up and down completely randomly.
Pair Corralation between Wuxi Xuelang and Kuangda Technology
Assuming the 90 days trading horizon Wuxi Xuelang Environmental is expected to generate 1.14 times more return on investment than Kuangda Technology. However, Wuxi Xuelang is 1.14 times more volatile than Kuangda Technology Group. It trades about 0.15 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.12 per unit of risk. If you would invest 435.00 in Wuxi Xuelang Environmental on November 6, 2024 and sell it today you would earn a total of 24.00 from holding Wuxi Xuelang Environmental or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Xuelang Environmental vs. Kuangda Technology Group
Performance |
| Timeline |
| Wuxi Xuelang Environ |
| Kuangda Technology |
Wuxi Xuelang and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Xuelang and Kuangda Technology
The main advantage of trading using opposite Wuxi Xuelang and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Xuelang 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.| Wuxi Xuelang vs. Eyebright Medical Technology | Wuxi Xuelang vs. Eastern Communications Co | Wuxi Xuelang vs. Xiangyang Automobile Bearing | Wuxi Xuelang vs. ROPEOK Technology Group |
| Kuangda Technology vs. GreenTech Environmental Co | Kuangda Technology vs. Elite Color Environmental | Kuangda Technology vs. Sinocat Environmental Technology | Kuangda Technology vs. MayAir Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |