Correlation Between Dongxing Sec and Kuang Chi
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By analyzing existing cross correlation between Dongxing Sec Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Kuang Chi.
Diversification Opportunities for Dongxing Sec and Kuang Chi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Kuang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co 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 Dongxing Sec 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 Dongxing Sec Co 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 Dongxing Sec i.e., Dongxing Sec and Kuang Chi go up and down completely randomly.
Pair Corralation between Dongxing Sec and Kuang Chi
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 2.6 times less return on investment than Kuang Chi. But when comparing it to its historical volatility, Dongxing Sec Co is 1.32 times less risky than Kuang Chi. It trades about 0.15 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,846 in Kuang Chi Technologies on September 27, 2024 and sell it today you would earn a total of 569.00 from holding Kuang Chi Technologies or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Kuang Chi Technologies
Performance |
| Timeline |
| Dongxing Sec |
| Kuang Chi Technologies |
Dongxing Sec and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Kuang Chi
The main advantage of trading using opposite Dongxing Sec and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD Co Ltd |
| Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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