Correlation Between New Perspective and Kuangda Technology
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By analyzing existing cross correlation between New Perspective Fund and Kuangda Technology Group, you can compare the effects of market volatilities on New Perspective 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 New Perspective with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Kuangda Technology.
Diversification Opportunities for New Perspective and Kuangda Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Kuangda is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and New Perspective 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 New Perspective Fund 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 New Perspective i.e., New Perspective and Kuangda Technology go up and down completely randomly.
Pair Corralation between New Perspective and Kuangda Technology
Assuming the 90 days horizon New Perspective is expected to generate 3.25 times less return on investment than Kuangda Technology. But when comparing it to its historical volatility, New Perspective Fund is 3.2 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 |
New Perspective Fund vs. Kuangda Technology Group
Performance |
| Timeline |
| New Perspective |
| Kuangda Technology |
New Perspective and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Kuangda Technology
The main advantage of trading using opposite New Perspective and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective 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.| New Perspective vs. Growth Fund Of | New Perspective vs. American Funds Fundamental | New Perspective vs. Investment Of America | New Perspective vs. Smallcap World Fund |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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