Correlation Between Henan Shuanghui and Kunwu Jiuding
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By analyzing existing cross correlation between Henan Shuanghui Investment and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Kunwu Jiuding.
Diversification Opportunities for Henan Shuanghui and Kunwu Jiuding
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Henan and Kunwu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Kunwu Jiuding
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 3.05 times less return on investment than Kunwu Jiuding. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.67 times less risky than Kunwu Jiuding. It trades about 0.01 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,546 in Kunwu Jiuding Investment on August 28, 2024 and sell it today you would lose (29.00) from holding Kunwu Jiuding Investment or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Kunwu Jiuding Investment |
Henan Shuanghui and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Kunwu Jiuding
The main advantage of trading using opposite Henan Shuanghui and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. China Petroleum Chemical | Henan Shuanghui vs. PetroChina Co Ltd | Henan Shuanghui vs. China State Construction | Henan Shuanghui vs. China Railway Group |
| Kunwu Jiuding vs. Dongguan Chitwing Technology | Kunwu Jiuding vs. Tianjin Ruixin Technology | Kunwu Jiuding vs. Huitong Construction Group | Kunwu Jiuding vs. Ningbo Construction 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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