Correlation Between Shenzhen Longsys and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Longsys Electronics and Kuangda Technology Group, you can compare the effects of market volatilities on Shenzhen Longsys 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 Shenzhen Longsys with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Longsys and Kuangda Technology.
Diversification Opportunities for Shenzhen Longsys and Kuangda Technology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Kuangda is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Longsys Electronics and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Shenzhen Longsys 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 Shenzhen Longsys Electronics 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 Shenzhen Longsys i.e., Shenzhen Longsys and Kuangda Technology go up and down completely randomly.
Pair Corralation between Shenzhen Longsys and Kuangda Technology
If you would invest 529.00 in Kuangda Technology Group on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Kuangda Technology Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Shenzhen Longsys Electronics vs. Kuangda Technology Group
Performance |
| Timeline |
| Shenzhen Longsys Ele |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Kuangda Technology |
Shenzhen Longsys and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Longsys and Kuangda Technology
The main advantage of trading using opposite Shenzhen Longsys and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Longsys 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.| Shenzhen Longsys vs. Nuode Investment Co | Shenzhen Longsys vs. Vanfund Urban Investment | Shenzhen Longsys vs. Integrated Electronic Systems | Shenzhen Longsys vs. Zhongrun Resources Investment |
| Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. China Construction Bank | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Bank of China |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |