Correlation Between China Securities and KL Technology
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By analyzing existing cross correlation between China Securities 800 and KL Technology, you can compare the effects of market volatilities on China Securities and KL 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 China Securities with a short position of KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and KL Technology.
Diversification Opportunities for China Securities and KL Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and KLTE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology and China Securities 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 China Securities 800 are associated (or correlated) with KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of China Securities i.e., China Securities and KL Technology go up and down completely randomly.
Pair Corralation between China Securities and KL Technology
Assuming the 90 days trading horizon China Securities 800 is expected to generate 1.15 times more return on investment than KL Technology. However, China Securities is 1.15 times more volatile than KL Technology. It trades about 0.05 of its potential returns per unit of risk. KL Technology is currently generating about -0.04 per unit of risk. If you would invest 389,356 in China Securities 800 on January 30, 2024 and sell it today you would earn a total of 3,815 from holding China Securities 800 or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
China Securities 800 vs. KL Technology
Performance |
Timeline |
China Securities and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
KL Technology
Pair trading matchups for KL Technology
Pair Trading with China Securities and KL Technology
The main advantage of trading using opposite China Securities and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, KL 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 KL Technology will offset losses from the drop in KL Technology's long position.China Securities vs. Hubei Xingfa Chemicals | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Do Fluoride Chemicals Co | China Securities vs. Porton Fine Chemicals |
KL Technology vs. Choo Bee Metal | KL Technology vs. Press Metal Bhd | KL Technology vs. Datasonic Group Bhd | KL Technology vs. Amalgamated Industrial Steel |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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