Correlation Between Hongrun Construction and Kontour Medical
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By analyzing existing cross correlation between Hongrun Construction Group and Kontour Medical Technology, you can compare the effects of market volatilities on Hongrun Construction and Kontour Medical 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 Hongrun Construction with a short position of Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Kontour Medical.
Diversification Opportunities for Hongrun Construction and Kontour Medical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hongrun and Kontour is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Kontour Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontour Medical Tech and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with Kontour Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontour Medical Tech has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Kontour Medical go up and down completely randomly.
Pair Corralation between Hongrun Construction and Kontour Medical
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 0.7 times more return on investment than Kontour Medical. However, Hongrun Construction Group is 1.43 times less risky than Kontour Medical. It trades about 0.01 of its potential returns per unit of risk. Kontour Medical Technology is currently generating about 0.0 per unit of risk. If you would invest 522.00 in Hongrun Construction Group on October 12, 2024 and sell it today you would lose (2.00) from holding Hongrun Construction Group or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Kontour Medical Technology
Performance |
| Timeline |
| Hongrun Construction |
| Kontour Medical Tech |
Hongrun Construction and Kontour Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Kontour Medical
The main advantage of trading using opposite Hongrun Construction and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Kontour Medical 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 Kontour Medical will offset losses from the drop in Kontour Medical's long position.| Hongrun Construction vs. Aba Chemicals Corp | Hongrun Construction vs. Hunan TV Broadcast | Hongrun Construction vs. Zhongshan Broad Ocean Motor | Hongrun Construction vs. Chongqing Road Bridge |
| Kontour Medical vs. Nuode Investment Co | Kontour Medical vs. PKU HealthCare Corp | Kontour Medical vs. Meinian Onehealth Healthcare | Kontour Medical vs. Xiandai Investment 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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