Correlation Between Kuangda Technology and Nanjing Putian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuangda Technology Group and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Kuangda Technology and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Nanjing Putian.
Diversification Opportunities for Kuangda Technology and Nanjing Putian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Nanjing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Nanjing Putian go up and down completely randomly.
Pair Corralation between Kuangda Technology and Nanjing Putian
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 1.87 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Kuangda Technology Group is 1.21 times less risky than Nanjing Putian. It trades about 0.22 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 192.00 in Nanjing Putian Telecommunications on September 13, 2024 and sell it today you would earn a total of 244.00 from holding Nanjing Putian Telecommunications or generate 127.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kuangda Technology Group vs. Nanjing Putian Telecommunicati
Performance |
Timeline |
Kuangda Technology |
Nanjing Putian Telec |
Kuangda Technology and Nanjing Putian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuangda Technology and Nanjing Putian
The main advantage of trading using opposite Kuangda Technology and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |