Correlation Between Xinke Material and Kuangda Technology
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By analyzing existing cross correlation between Xinke Material and Kuangda Technology Group, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Kuangda Technology.
Diversification Opportunities for Xinke Material and Kuangda Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinke and Kuangda is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Kuangda Technology go up and down completely randomly.
Pair Corralation between Xinke Material and Kuangda Technology
Assuming the 90 days trading horizon Xinke Material is expected to generate 2.38 times more return on investment than Kuangda Technology. However, Xinke Material is 2.38 times more volatile than Kuangda Technology Group. It trades about 0.28 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.26 per unit of risk. If you would invest 273.00 in Xinke Material on October 11, 2024 and sell it today you would earn a total of 127.00 from holding Xinke Material or generate 46.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Kuangda Technology Group
Performance |
| Timeline |
| Xinke Material |
| Kuangda Technology |
Xinke Material and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Kuangda Technology
The main advantage of trading using opposite Xinke Material and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Semiconductor Manufacturing Electronics | Xinke Material vs. Jiujiang Shanshui Technology | Xinke Material vs. Jinlong Machinery Electronic | Xinke Material vs. Success Electronics |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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