Correlation Between American Funds and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Funds Fundamental and Kuangda Technology Group, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Kuangda Technology.
Diversification Opportunities for American Funds and Kuangda Technology
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Kuangda is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and American Funds 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 American Funds Fundamental 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 American Funds i.e., American Funds and Kuangda Technology go up and down completely randomly.
Pair Corralation between American Funds and Kuangda Technology
Assuming the 90 days horizon American Funds is expected to generate 2.89 times less return on investment than Kuangda Technology. But when comparing it to its historical volatility, American Funds Fundamental is 2.64 times less risky than Kuangda Technology. It trades about 0.06 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 356.00 in Kuangda Technology Group on November 3, 2024 and sell it today you would earn a total of 134.00 from holding Kuangda Technology Group or generate 37.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.14% |
| Values | Daily Returns |
American Funds Fundamental vs. Kuangda Technology Group
Performance |
| Timeline |
| American Funds Funda |
| Kuangda Technology |
American Funds and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Kuangda Technology
The main advantage of trading using opposite American Funds and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Federated Emerging Market | American Funds vs. Siit Emerging Markets | American Funds vs. Mid Cap 15x Strategy | American Funds vs. Ashmore Emerging Markets |
| Kuangda Technology vs. StarPower Semiconductor | Kuangda Technology vs. New Hope Dairy | Kuangda Technology vs. Suzhou Oriental Semiconductor | Kuangda Technology vs. Qingdao Foods 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |