Correlation Between Xinya Electronic and Kuang Chi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinya Electronic Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Kuang Chi.
Diversification Opportunities for Xinya Electronic and Kuang Chi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Kuang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic i.e., Xinya Electronic and Kuang Chi go up and down completely randomly.
Pair Corralation between Xinya Electronic and Kuang Chi
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 4.45 times less return on investment than Kuang Chi. But when comparing it to its historical volatility, Xinya Electronic Co is 1.44 times less risky than Kuang Chi. It trades about 0.07 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,721 in Kuang Chi Technologies on September 27, 2024 and sell it today you would earn a total of 2,694 from holding Kuang Chi Technologies or generate 156.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Kuang Chi Technologies
Performance |
| Timeline |
| Xinya Electronic |
| Kuang Chi Technologies |
Xinya Electronic and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Kuang Chi
The main advantage of trading using opposite Xinya Electronic and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |