Correlation Between Kangyue Technology and Kuangda Technology
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By analyzing existing cross correlation between Kangyue Technology Co and Kuangda Technology Group, you can compare the effects of market volatilities on Kangyue Technology 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 Kangyue Technology with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Kuangda Technology.
Diversification Opportunities for Kangyue Technology and Kuangda Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Kuangda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Kangyue Technology 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 Kangyue Technology Co 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 Kangyue Technology i.e., Kangyue Technology and Kuangda Technology go up and down completely randomly.
Pair Corralation between Kangyue Technology and Kuangda Technology
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 2.25 times more return on investment than Kuangda Technology. However, Kangyue Technology is 2.25 times more volatile than Kuangda Technology Group. It trades about 0.4 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.02 per unit of risk. If you would invest 410.00 in Kangyue Technology Co on December 4, 2024 and sell it today you would earn a total of 148.00 from holding Kangyue Technology Co or generate 36.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Kangyue Technology |
| Kuangda Technology |
Kangyue Technology and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Kuangda Technology
The main advantage of trading using opposite Kangyue Technology and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology 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.| Kangyue Technology vs. JCHX Mining Management | Kangyue Technology vs. Hygon Information Technology | Kangyue Technology vs. Tianjin Silvery Dragon | Kangyue Technology vs. Yonghui Superstores Co |
| Kuangda Technology vs. BYD Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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