Correlation Between Kuangda Technology and Yunnan Chuangxin
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By analyzing existing cross correlation between Kuangda Technology Group and Yunnan Chuangxin New, you can compare the effects of market volatilities on Kuangda Technology and Yunnan Chuangxin 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 Kuangda Technology with a short position of Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Yunnan Chuangxin.
Diversification Opportunities for Kuangda Technology and Yunnan Chuangxin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Yunnan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New and Kuangda Technology 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 Kuangda Technology Group are associated (or correlated) with Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between Kuangda Technology and Yunnan Chuangxin
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.94 times more return on investment than Yunnan Chuangxin. However, Kuangda Technology is 1.94 times more volatile than Yunnan Chuangxin New. It trades about 0.03 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about -0.41 per unit of risk. If you would invest 531.00 in Kuangda Technology Group on September 26, 2024 and sell it today you would earn a total of 6.00 from holding Kuangda Technology Group or generate 1.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuangda Technology Group vs. Yunnan Chuangxin New
Performance |
Timeline |
Kuangda Technology |
Yunnan Chuangxin New |
Kuangda Technology and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuangda Technology and Yunnan Chuangxin
The main advantage of trading using opposite Kuangda Technology and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.Kuangda Technology vs. Cambricon Technologies Corp | Kuangda Technology vs. Loongson Technology Corp | Kuangda Technology vs. Shenzhen Fortune Trend | Kuangda Technology vs. Chongqing Road Bridge |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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