Correlation Between Shaanxi Meineng and Kunshan Guoli
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Kunshan Guoli.
Diversification Opportunities for Shaanxi Meineng and Kunshan Guoli
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Kunshan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean 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 Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Kunshan Guoli
Assuming the 90 days trading horizon Shaanxi Meineng is expected to generate 1.46 times less return on investment than Kunshan Guoli. But when comparing it to its historical volatility, Shaanxi Meineng Clean is 1.81 times less risky than Kunshan Guoli. It trades about 0.12 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,640 in Kunshan Guoli Electronic on August 30, 2024 and sell it today you would earn a total of 537.00 from holding Kunshan Guoli Electronic or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Kunshan Guoli Electronic |
Shaanxi Meineng and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Kunshan Guoli
The main advantage of trading using opposite Shaanxi Meineng and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Ming Yang Smart | Shaanxi Meineng vs. 159681 | Shaanxi Meineng vs. 159005 | Shaanxi Meineng vs. Loctek Ergonomic Technology |
| Kunshan Guoli vs. Cultural Investment Holdings | Kunshan Guoli vs. Gome Telecom Equipment | Kunshan Guoli vs. Bus Online Co | Kunshan Guoli vs. Holitech Technology 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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