Correlation Between Cabio Biotech and Kuang Chi
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Kuang Chi Technologies, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Kuang Chi.
Diversification Opportunities for Cabio Biotech and Kuang Chi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cabio and Kuang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan 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 Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Kuang Chi go up and down completely randomly.
Pair Corralation between Cabio Biotech and Kuang Chi
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Kuang Chi. In addition to that, Cabio Biotech is 1.09 times more volatile than Kuang Chi Technologies. It trades about -0.03 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.07 per unit of volatility. If you would invest 1,811 in Kuang Chi Technologies on October 16, 2024 and sell it today you would earn a total of 2,234 from holding Kuang Chi Technologies or generate 123.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Kuang Chi Technologies
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Kuang Chi Technologies |
Cabio Biotech and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Kuang Chi
The main advantage of trading using opposite Cabio Biotech and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Kuang Chi vs. China World Trade | Kuang Chi vs. XiaMen HongXin Electron tech | Kuang Chi vs. Sharetronic Data Technology | Kuang Chi vs. China Eastern Airlines |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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