Correlation Between China Everbright and Kuang Chi
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By analyzing existing cross correlation between China Everbright Bank and Kuang Chi Technologies, you can compare the effects of market volatilities on China Everbright 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 China Everbright with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Kuang Chi.
Diversification Opportunities for China Everbright and Kuang Chi
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Kuang is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank 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 China Everbright 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 China Everbright Bank 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 China Everbright i.e., China Everbright and Kuang Chi go up and down completely randomly.
Pair Corralation between China Everbright and Kuang Chi
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.5 times more return on investment than Kuang Chi. However, China Everbright Bank is 1.99 times less risky than Kuang Chi. It trades about 0.12 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.03 per unit of risk. If you would invest 360.00 in China Everbright Bank on October 30, 2024 and sell it today you would earn a total of 27.00 from holding China Everbright Bank or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Kuang Chi Technologies
Performance |
| Timeline |
| China Everbright Bank |
| Kuang Chi Technologies |
China Everbright and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Kuang Chi
The main advantage of trading using opposite China Everbright and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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.| China Everbright vs. Pengxin International Mining | China Everbright vs. Western Metal Materials | China Everbright vs. Hainan Haiqi Transportation | China Everbright vs. Tibet Huayu Mining |
| Kuang Chi vs. Allied Machinery Co | Kuang Chi vs. Huasi Agricultural Development | Kuang Chi vs. COL Digital Publishing | Kuang Chi vs. Lutian Machinery 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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