Correlation Between Bohai Leasing and Kunwu Jiuding
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By analyzing existing cross correlation between Bohai Leasing Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Bohai Leasing and Kunwu Jiuding 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 Bohai Leasing with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Kunwu Jiuding.
Diversification Opportunities for Bohai Leasing and Kunwu Jiuding
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bohai and Kunwu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Bohai Leasing and Kunwu Jiuding
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.68 times more return on investment than Kunwu Jiuding. However, Bohai Leasing Co is 1.46 times less risky than Kunwu Jiuding. It trades about -0.5 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.34 per unit of risk. If you would invest 422.00 in Bohai Leasing Co on October 12, 2024 and sell it today you would lose (76.00) from holding Bohai Leasing Co or give up 18.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Bohai Leasing |
| Kunwu Jiuding Investment |
Bohai Leasing and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Kunwu Jiuding
The main advantage of trading using opposite Bohai Leasing and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Bohai Leasing vs. Southern PublishingMedia Co | Bohai Leasing vs. Mango Excellent Media | Bohai Leasing vs. Allwin Telecommunication Co | Bohai Leasing vs. Duzhe Publishing Media |
| Kunwu Jiuding vs. New Hope Dairy | Kunwu Jiuding vs. JuneYao Dairy Co | Kunwu Jiuding vs. Bohai Leasing Co | Kunwu Jiuding vs. Qingdao Foods 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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