Correlation Between Shenzhen SDG and Konfoong Materials
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By analyzing existing cross correlation between Shenzhen SDG Information and Konfoong Materials International, you can compare the effects of market volatilities on Shenzhen SDG and Konfoong Materials 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 Shenzhen SDG with a short position of Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Konfoong Materials.
Diversification Opportunities for Shenzhen SDG and Konfoong Materials
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Konfoong is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Konfoong Materials go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Konfoong Materials
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 3.51 times less return on investment than Konfoong Materials. In addition to that, Shenzhen SDG is 1.16 times more volatile than Konfoong Materials International. It trades about 0.0 of its total potential returns per unit of risk. Konfoong Materials International is currently generating about 0.01 per unit of volatility. If you would invest 7,562 in Konfoong Materials International on October 11, 2024 and sell it today you would lose (968.00) from holding Konfoong Materials International or give up 12.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Konfoong Materials Internation
Performance |
| Timeline |
| Shenzhen SDG Information |
| Konfoong Materials |
Shenzhen SDG and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Konfoong Materials
The main advantage of trading using opposite Shenzhen SDG and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Shenzhen SDG vs. HaiXin Foods Co | Shenzhen SDG vs. Youyou Foods Co | Shenzhen SDG vs. Anhui Transport Consulting | Shenzhen SDG vs. Guangdong Qunxing Toys |
| Konfoong Materials vs. Shenzhen SDG Information | Konfoong Materials vs. Xinhua Winshare Publishing | Konfoong Materials vs. Longmaster Information Tech | Konfoong Materials vs. Jiangsu Yanghe Brewery |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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