Correlation Between Shandong Iron and Kuang Chi
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By analyzing existing cross correlation between Shandong Iron and and Kuang Chi Technologies, you can compare the effects of market volatilities on Shandong Iron 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 Shandong Iron with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Kuang Chi.
Diversification Opportunities for Shandong Iron and Kuang Chi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Kuang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and 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 Shandong Iron 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 Shandong Iron and 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 Shandong Iron i.e., Shandong Iron and Kuang Chi go up and down completely randomly.
Pair Corralation between Shandong Iron and Kuang Chi
Assuming the 90 days trading horizon Shandong Iron and is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Iron and is 2.13 times less risky than Kuang Chi. The stock trades about -0.21 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 4,415 in Kuang Chi Technologies on October 26, 2024 and sell it today you would lose (308.00) from holding Kuang Chi Technologies or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shandong Iron and vs. Kuang Chi Technologies
Performance |
| Timeline |
| Shandong Iron |
| Kuang Chi Technologies |
Shandong Iron and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Kuang Chi
The main advantage of trading using opposite Shandong Iron and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron 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.| Shandong Iron vs. Innovative Medical Management | Shandong Iron vs. De Rucci Healthy | Shandong Iron vs. Hubei Xingfa Chemicals | Shandong Iron vs. Anhui Huaren Health |
| Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Jiangsu Pacific Quartz | Kuang Chi vs. Shenzhen Transsion Holdings | Kuang Chi vs. Beijing Roborock Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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