Correlation Between Malion New and Kuangda Technology
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By analyzing existing cross correlation between Malion New Materials and Kuangda Technology Group, you can compare the effects of market volatilities on Malion New 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 Malion New with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Kuangda Technology.
Diversification Opportunities for Malion New and Kuangda Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malion and Kuangda is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Malion New 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 Malion New Materials 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 Malion New i.e., Malion New and Kuangda Technology go up and down completely randomly.
Pair Corralation between Malion New and Kuangda Technology
Assuming the 90 days trading horizon Malion New Materials is expected to under-perform the Kuangda Technology. But the stock apears to be less risky and, when comparing its historical volatility, Malion New Materials is 1.22 times less risky than Kuangda Technology. The stock trades about -0.49 of its potential returns per unit of risk. The Kuangda Technology Group is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 581.00 in Kuangda Technology Group on October 11, 2024 and sell it today you would lose (97.00) from holding Kuangda Technology Group or give up 16.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Kuangda Technology Group
Performance |
| Timeline |
| Malion New Materials |
| Kuangda Technology |
Malion New and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Kuangda Technology
The main advantage of trading using opposite Malion New and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New 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.| Malion New vs. Penyao Environmental Protection | Malion New vs. Tianjin Capital Environmental | Malion New vs. Qiaoyin Environmental Tech | Malion New vs. Ningbo Fangzheng Automobile |
| Kuangda Technology vs. Kuang Chi Technologies | Kuangda Technology vs. Shanghai Shibei Hi Tech | Kuangda Technology vs. Hangzhou Arcvideo Technology | Kuangda Technology vs. Harbin Air Conditioning |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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