Correlation Between Kuangda Technology and Iat Automobile
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By analyzing existing cross correlation between Kuangda Technology Group and Iat Automobile Technology, you can compare the effects of market volatilities on Kuangda Technology and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Iat Automobile.
Diversification Opportunities for Kuangda Technology and Iat Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Iat is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Kuangda Technology i.e., Kuangda Technology and Iat Automobile go up and down completely randomly.
Pair Corralation between Kuangda Technology and Iat Automobile
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.88 times more return on investment than Iat Automobile. However, Kuangda Technology Group is 1.14 times less risky than Iat Automobile. It trades about 0.14 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.12 per unit of risk. If you would invest 405.00 in Kuangda Technology Group on September 26, 2024 and sell it today you would earn a total of 132.00 from holding Kuangda Technology Group or generate 32.59% 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. Iat Automobile Technology
Performance |
Timeline |
Kuangda Technology |
Iat Automobile Technology |
Kuangda Technology and Iat Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuangda Technology and Iat Automobile
The main advantage of trading using opposite Kuangda Technology and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.Kuangda Technology vs. Cambricon Technologies Corp | Kuangda Technology vs. Loongson Technology Corp | Kuangda Technology vs. Shenzhen Fortune Trend | Kuangda Technology vs. Chongqing Road Bridge |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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