Correlation Between Lander Sports and Kunshan Guoli
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By analyzing existing cross correlation between Lander Sports Development and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Lander Sports and Kunshan Guoli 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 Lander Sports with a short position of Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Kunshan Guoli.
Diversification Opportunities for Lander Sports and Kunshan Guoli
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lander and Kunshan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic and Lander Sports 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 Lander Sports Development are associated (or correlated) with Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Lander Sports i.e., Lander Sports and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Lander Sports and Kunshan Guoli
Assuming the 90 days trading horizon Lander Sports is expected to generate 1.76 times less return on investment than Kunshan Guoli. But when comparing it to its historical volatility, Lander Sports Development is 1.24 times less risky than Kunshan Guoli. It trades about 0.15 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,876 in Kunshan Guoli Electronic on August 25, 2024 and sell it today you would earn a total of 1,348 from holding Kunshan Guoli Electronic or generate 46.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Lander Sports Development |
| Kunshan Guoli Electronic |
Lander Sports and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Kunshan Guoli
The main advantage of trading using opposite Lander Sports and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Lander Sports vs. Shuhua Sports Co | Lander Sports vs. Zhongrun Resources Investment | Lander Sports vs. Guangdong Advertising Co | Lander Sports vs. Nuode Investment Co |
| Kunshan Guoli vs. Lander Sports Development | Kunshan Guoli vs. Hongrun Construction Group | Kunshan Guoli vs. Zhejiang Yinlun Machinery | Kunshan Guoli vs. Sinomach General Machinery |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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