Correlation Between Ye Chiu and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Kuangda Technology Group, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Kuangda Technology.
Diversification Opportunities for Ye Chiu and Kuangda Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Kuangda is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Kuangda Technology go up and down completely randomly.
Pair Corralation between Ye Chiu and Kuangda Technology
Assuming the 90 days trading horizon Ye Chiu is expected to generate 1.13 times less return on investment than Kuangda Technology. In addition to that, Ye Chiu is 1.18 times more volatile than Kuangda Technology Group. It trades about 0.01 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.02 per unit of volatility. If you would invest 506.00 in Kuangda Technology Group on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Kuangda Technology Group or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Kuangda Technology Group
Performance |
| Timeline |
| Ye Chiu Metal |
| Kuangda Technology |
Ye Chiu and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Kuangda Technology
The main advantage of trading using opposite Ye Chiu and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Shandong Gold Mining | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Inner Mongolia BaoTou |
| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology vs. G bits Network 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |