Correlation Between Kuang Chi and Jointo Energy
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By analyzing existing cross correlation between Kuang Chi Technologies and Jointo Energy Investment, you can compare the effects of market volatilities on Kuang Chi and Jointo Energy 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 Kuang Chi with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jointo Energy.
Diversification Opportunities for Kuang Chi and Jointo Energy
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuang and Jointo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment and Kuang Chi 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 Kuang Chi Technologies are associated (or correlated) with Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Kuang Chi i.e., Kuang Chi and Jointo Energy go up and down completely randomly.
Pair Corralation between Kuang Chi and Jointo Energy
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.2 times more return on investment than Jointo Energy. However, Kuang Chi is 1.2 times more volatile than Jointo Energy Investment. It trades about 0.08 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.02 per unit of risk. If you would invest 1,752 in Kuang Chi Technologies on September 26, 2024 and sell it today you would earn a total of 2,660 from holding Kuang Chi Technologies or generate 151.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Jointo Energy Investment
Performance |
Timeline |
Kuang Chi Technologies |
Jointo Energy Investment |
Kuang Chi and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Jointo Energy
The main advantage of trading using opposite Kuang Chi and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec Co |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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