Correlation Between China Reform and Konfoong Materials
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By analyzing existing cross correlation between China Reform Health and Konfoong Materials International, you can compare the effects of market volatilities on China Reform 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 China Reform with a short position of Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Konfoong Materials.
Diversification Opportunities for China Reform and Konfoong Materials
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Konfoong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials and China Reform 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 Reform Health 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 China Reform i.e., China Reform and Konfoong Materials go up and down completely randomly.
Pair Corralation between China Reform and Konfoong Materials
Assuming the 90 days trading horizon China Reform is expected to generate 3.34 times less return on investment than Konfoong Materials. In addition to that, China Reform is 1.06 times more volatile than Konfoong Materials International. It trades about 0.02 of its total potential returns per unit of risk. Konfoong Materials International is currently generating about 0.07 per unit of volatility. If you would invest 4,482 in Konfoong Materials International on October 18, 2024 and sell it today you would earn a total of 2,431 from holding Konfoong Materials International or generate 54.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Konfoong Materials Internation
Performance |
| Timeline |
| China Reform Health |
| Konfoong Materials |
China Reform and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Konfoong Materials
The main advantage of trading using opposite China Reform and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform 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.| China Reform vs. Changchun Engley Automobile | China Reform vs. Haima Automobile Group | China Reform vs. Chengtun Mining Group | China Reform vs. Jiangsu Xinri E Vehicle |
| Konfoong Materials vs. Double Medical Technology | Konfoong Materials vs. Allmed Medical Products | Konfoong Materials vs. Zhonghong Pulin Medical | Konfoong Materials vs. Shandong Publishing Media |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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