Correlation Between Lao Feng and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lao Feng Xiang and Kuangda Technology Group, you can compare the effects of market volatilities on Lao Feng and Kuangda 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 Lao Feng with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lao Feng and Kuangda Technology.
Diversification Opportunities for Lao Feng and Kuangda Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lao and Kuangda is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lao Feng Xiang and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Lao Feng 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 Lao Feng Xiang are associated (or correlated) with Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Lao Feng i.e., Lao Feng and Kuangda Technology go up and down completely randomly.
Pair Corralation between Lao Feng and Kuangda Technology
Assuming the 90 days trading horizon Lao Feng Xiang is expected to generate 0.88 times more return on investment than Kuangda Technology. However, Lao Feng Xiang is 1.14 times less risky than Kuangda Technology. It trades about 0.07 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.09 per unit of risk. If you would invest 4,894 in Lao Feng Xiang on October 6, 2024 and sell it today you would earn a total of 343.00 from holding Lao Feng Xiang or generate 7.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lao Feng Xiang vs. Kuangda Technology Group
Performance |
Timeline |
Lao Feng Xiang |
Kuangda Technology |
Lao Feng and Kuangda Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lao Feng and Kuangda Technology
The main advantage of trading using opposite Lao Feng and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lao Feng position performs unexpectedly, Kuangda 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.Lao Feng vs. Shanghai Shuixing Home | Lao Feng vs. Vohringer Home Technology | Lao Feng vs. Sanxiang Advanced Materials | Lao Feng vs. Kangxin New Materials |
Kuangda Technology vs. Longxing Chemical Stock | Kuangda Technology vs. Queclink Wireless Solutions | Kuangda Technology vs. Guangzhou Jointas Chemical | Kuangda Technology vs. HeBei Jinniu Chemical |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |