Correlation Between Yingde Greatchem and Kuang Chi
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Kuang Chi Technologies, you can compare the effects of market volatilities on Yingde Greatchem and Kuang Chi 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 Yingde Greatchem with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Kuang Chi.
Diversification Opportunities for Yingde Greatchem and Kuang Chi
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yingde and Kuang is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Kuang Chi go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Kuang Chi
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.52 times less risky than Kuang Chi. The stock trades about -0.23 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 4,273 in Kuang Chi Technologies on October 13, 2024 and sell it today you would lose (243.00) from holding Kuang Chi Technologies or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Kuang Chi Technologies
Performance |
| Timeline |
| Yingde Greatchem Che |
| Kuang Chi Technologies |
Yingde Greatchem and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Kuang Chi
The main advantage of trading using opposite Yingde Greatchem and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Yingde Greatchem vs. HaiXin Foods Co | Yingde Greatchem vs. Union Semiconductor Co | Yingde Greatchem vs. Qingdao Foods Co | Yingde Greatchem vs. Shantou Wanshun Package |
| Kuang Chi vs. Duzhe Publishing Media | Kuang Chi vs. Shanghai Newtouch Software | Kuang Chi vs. Yingde Greatchem Chemicals | Kuang Chi vs. Aba Chemicals Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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