Correlation Between Dongfeng Automobile and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Kuangda Technology Group, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Kuangda Technology.
Diversification Opportunities for Dongfeng Automobile and Kuangda Technology
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and Kuangda is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile i.e., Dongfeng Automobile and Kuangda Technology go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Kuangda Technology
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Kuangda Technology. In addition to that, Dongfeng Automobile is 1.31 times more volatile than Kuangda Technology Group. It trades about -0.18 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.13 per unit of volatility. If you would invest 536.00 in Kuangda Technology Group on October 28, 2024 and sell it today you would lose (33.00) from holding Kuangda Technology Group or give up 6.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Dongfeng Automobile |
| Kuangda Technology |
Dongfeng Automobile and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Kuangda Technology
The main advantage of trading using opposite Dongfeng Automobile and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. StarPower Semiconductor | Dongfeng Automobile vs. Fujian Longzhou Transportation | Dongfeng Automobile vs. Thinkon Semiconductor Jinzhou | Dongfeng Automobile vs. Will Semiconductor Co |
| Kuangda Technology vs. Wuxi Xuelang Environmental | Kuangda Technology vs. Tongxing Environmental Protection | Kuangda Technology vs. Tibet Huayu Mining | Kuangda Technology vs. Western Mining 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |