Correlation Between Shanghai Shibei and Kuangda Technology
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Kuangda Technology Group, you can compare the effects of market volatilities on Shanghai Shibei 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 Shanghai Shibei with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Kuangda Technology.
Diversification Opportunities for Shanghai Shibei and Kuangda Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Kuangda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Shanghai Shibei 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 Shanghai Shibei Hi Tech 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 Shanghai Shibei i.e., Shanghai Shibei and Kuangda Technology go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Kuangda Technology
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the Kuangda Technology. In addition to that, Shanghai Shibei is 1.07 times more volatile than Kuangda Technology Group. It trades about 0.0 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.01 per unit of volatility. If you would invest 510.00 in Kuangda Technology Group on October 26, 2024 and sell it today you would lose (7.00) from holding Kuangda Technology Group or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Kuangda Technology Group
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Kuangda Technology |
Shanghai Shibei and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Kuangda Technology
The main advantage of trading using opposite Shanghai Shibei and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei 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.| Shanghai Shibei vs. Kuang Chi Technologies | Shanghai Shibei vs. Innovative Medical Management | Shanghai Shibei vs. Chongqing Changan Automobile | Shanghai Shibei vs. CIMC Vehicles Co |
| Kuangda Technology vs. Citic Offshore Helicopter | Kuangda Technology vs. Guocheng Mining Co | Kuangda Technology vs. Fujian Oriental Silver | Kuangda Technology vs. Offshore Oil Engineering |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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