Correlation Between Westone Information and Kontour Medical
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By analyzing existing cross correlation between Westone Information Industry and Kontour Medical Technology, you can compare the effects of market volatilities on Westone Information 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 Westone Information with a short position of Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Kontour Medical.
Diversification Opportunities for Westone Information and Kontour Medical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Westone and Kontour is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry 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 Westone Information 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 Westone Information Industry 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 Westone Information i.e., Westone Information and Kontour Medical go up and down completely randomly.
Pair Corralation between Westone Information and Kontour Medical
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Kontour Medical. But the stock apears to be less risky and, when comparing its historical volatility, Westone Information Industry is 1.11 times less risky than Kontour Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Kontour Medical Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,570 in Kontour Medical Technology on October 15, 2024 and sell it today you would lose (831.00) from holding Kontour Medical Technology or give up 23.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Kontour Medical Technology
Performance |
| Timeline |
| Westone Information |
| Kontour Medical Tech |
Westone Information and Kontour Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Kontour Medical
The main advantage of trading using opposite Westone Information and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information 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.| Westone Information vs. Ningxia Building Materials | Westone Information vs. Shuhua Sports Co | Westone Information vs. Zhejiang HISUN Biomaterials | Westone Information vs. Shanghai Yaoji Playing |
| Kontour Medical vs. Bloomage Biotechnology Corp | Kontour Medical vs. Ningxia Younglight Chemicals | Kontour Medical vs. Sunwave Communications Co | Kontour Medical vs. Dr Peng Telecom |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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