Correlation Between Loongson Technology and Kuang Chi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loongson Technology Corp and Kuang Chi Technologies, you can compare the effects of market volatilities on Loongson Technology and Kuang Chi 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 Loongson Technology with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loongson Technology and Kuang Chi.
Diversification Opportunities for Loongson Technology and Kuang Chi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loongson and Kuang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loongson Technology Corp and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Loongson 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 Loongson Technology Corp are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Loongson Technology i.e., Loongson Technology and Kuang Chi go up and down completely randomly.
Pair Corralation between Loongson Technology and Kuang Chi
Assuming the 90 days trading horizon Loongson Technology Corp is expected to under-perform the Kuang Chi. In addition to that, Loongson Technology is 1.02 times more volatile than Kuang Chi Technologies. It trades about -0.02 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.2 per unit of volatility. If you would invest 4,005 in Kuang Chi Technologies on September 26, 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 |
Loongson Technology Corp vs. Kuang Chi Technologies
Performance |
Timeline |
Loongson Technology Corp |
Kuang Chi Technologies |
Loongson Technology and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loongson Technology and Kuang Chi
The main advantage of trading using opposite Loongson Technology and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loongson Technology position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.Loongson Technology vs. Ming Yang Smart | Loongson Technology vs. 159681 | Loongson Technology vs. 159005 | Loongson Technology vs. Loctek Ergonomic Technology |
Kuang Chi vs. China Life Insurance | Kuang Chi vs. Cinda Securities Co | Kuang Chi vs. Piotech Inc A | Kuang Chi vs. Dongxing Sec Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |