Correlation Between Kuang Chi and BOE Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and BOE Technology Group, you can compare the effects of market volatilities on Kuang Chi and BOE 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 Kuang Chi with a short position of BOE Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and BOE Technology.
Diversification Opportunities for Kuang Chi and BOE Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and BOE is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and BOE Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOE Technology Group 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 BOE Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOE Technology Group has no effect on the direction of Kuang Chi i.e., Kuang Chi and BOE Technology go up and down completely randomly.
Pair Corralation between Kuang Chi and BOE Technology
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 2.4 times more return on investment than BOE Technology. However, Kuang Chi is 2.4 times more volatile than BOE Technology Group. It trades about 0.2 of its potential returns per unit of risk. BOE Technology Group is currently generating about 0.18 per unit of risk. If you would invest 4,005 in Kuang Chi Technologies on September 25, 2024 and sell it today you would earn a total of 407.00 from holding Kuang Chi Technologies or generate 10.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. BOE Technology Group
Performance |
Timeline |
Kuang Chi Technologies |
BOE Technology Group |
Kuang Chi and BOE Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and BOE Technology
The main advantage of trading using opposite Kuang Chi and BOE Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, BOE 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 BOE Technology will offset losses from the drop in BOE Technology's long position.Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Lotus Health Group | Kuang Chi vs. Dezhan HealthCare Co | Kuang Chi vs. By health |
BOE Technology vs. Industrial and Commercial | BOE Technology vs. China Construction Bank | BOE Technology vs. Agricultural Bank of | BOE Technology vs. Bank of China |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |