Correlation Between Keli Sensing and Kuangda Technology
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By analyzing existing cross correlation between Keli Sensing Technology and Kuangda Technology Group, you can compare the effects of market volatilities on Keli Sensing 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 Keli Sensing with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Kuangda Technology.
Diversification Opportunities for Keli Sensing and Kuangda Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keli and Kuangda is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Keli Sensing 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 Keli Sensing Technology 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 Keli Sensing i.e., Keli Sensing and Kuangda Technology go up and down completely randomly.
Pair Corralation between Keli Sensing and Kuangda Technology
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.31 times more return on investment than Kuangda Technology. However, Keli Sensing is 1.31 times more volatile than Kuangda Technology Group. It trades about 0.34 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.21 per unit of risk. If you would invest 2,223 in Keli Sensing Technology on August 28, 2024 and sell it today you would earn a total of 2,898 from holding Keli Sensing Technology or generate 130.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keli Sensing Technology vs. Kuangda Technology Group
Performance |
| Timeline |
| Keli Sensing Technology |
| Kuangda Technology |
Keli Sensing and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Kuangda Technology
The main advantage of trading using opposite Keli Sensing and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing 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.| Keli Sensing vs. Kweichow Moutai Co | Keli Sensing vs. Shenzhen Mindray Bio Medical | Keli Sensing vs. Jiangsu Pacific Quartz | Keli Sensing vs. G bits Network Technology |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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