Correlation Between Kuang Chi and Changjiang Jinggong
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By analyzing existing cross correlation between Kuang Chi Technologies and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Kuang Chi and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Changjiang Jinggong.
Diversification Opportunities for Kuang Chi and Changjiang Jinggong
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Changjiang is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Kuang Chi i.e., Kuang Chi and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Kuang Chi and Changjiang Jinggong
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 2.49 times more return on investment than Changjiang Jinggong. However, Kuang Chi is 2.49 times more volatile than Changjiang Jinggong Steel. It trades about 0.03 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.16 per unit of risk. If you would invest 4,396 in Kuang Chi Technologies on October 22, 2024 and sell it today you would earn a total of 29.00 from holding Kuang Chi Technologies or generate 0.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Changjiang Jinggong Steel
Performance |
Timeline |
Kuang Chi Technologies |
Changjiang Jinggong Steel |
Kuang Chi and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Changjiang Jinggong
The main advantage of trading using opposite Kuang Chi and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.Kuang Chi vs. Dawning Information Industry | Kuang Chi vs. Digital China Information | Kuang Chi vs. Shanghai Action Education | Kuang Chi vs. COL Digital Publishing |
Changjiang Jinggong vs. Air China Ltd | Changjiang Jinggong vs. Anhui Transport Consulting | Changjiang Jinggong vs. Jinling Hotel Corp | Changjiang Jinggong vs. SSAW Hotels Resorts |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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