Correlation Between Fujian Oriental and Kuangda Technology
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By analyzing existing cross correlation between Fujian Oriental Silver and Kuangda Technology Group, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Kuangda Technology.
Diversification Opportunities for Fujian Oriental and Kuangda Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Kuangda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Kuangda Technology go up and down completely randomly.
Pair Corralation between Fujian Oriental and Kuangda Technology
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Kuangda Technology. In addition to that, Fujian Oriental is 2.5 times more volatile than Kuangda Technology Group. It trades about -0.15 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.12 per unit of volatility. If you would invest 472.00 in Kuangda Technology Group on November 5, 2024 and sell it today you would earn a total of 18.00 from holding Kuangda Technology Group or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Kuangda Technology Group
Performance |
| Timeline |
| Fujian Oriental Silver |
| Kuangda Technology |
Fujian Oriental and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Kuangda Technology
The main advantage of trading using opposite Fujian Oriental and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Wintao Communications Co | Fujian Oriental vs. Guangzhou Haige Communications | Fujian Oriental vs. CICT Mobile Communication | Fujian Oriental vs. Changchun BCHT Biotechnology |
| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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