Correlation Between HUAQIN TECHNOLOGY and Kuangda Technology
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Kuangda Technology Group, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Kuangda Technology.
Diversification Opportunities for HUAQIN TECHNOLOGY and Kuangda Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUAQIN and Kuangda is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Kuangda Technology go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Kuangda Technology
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.9 times more return on investment than Kuangda Technology. However, HUAQIN TECHNOLOGY LTD is 1.11 times less risky than Kuangda Technology. It trades about 0.12 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.05 per unit of risk. If you would invest 5,702 in HUAQIN TECHNOLOGY LTD on October 12, 2024 and sell it today you would earn a total of 1,336 from holding HUAQIN TECHNOLOGY LTD or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Kuangda Technology Group
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Kuangda Technology |
HUAQIN TECHNOLOGY and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Kuangda Technology
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology | HUAQIN TECHNOLOGY vs. Emdoor Information Co | HUAQIN TECHNOLOGY vs. Guodian Nanjing Automation |
| Kuangda Technology vs. Kuang Chi Technologies | Kuangda Technology vs. Shanghai Shibei Hi Tech | Kuangda Technology vs. Hangzhou Arcvideo Technology | Kuangda Technology vs. Harbin Air Conditioning |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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