Correlation Between Do Fluoride and Kunwu Jiuding
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Kunwu Jiuding.
Diversification Opportunities for Do Fluoride and Kunwu Jiuding
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 002407 and Kunwu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co 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 Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Do Fluoride and Kunwu Jiuding
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 1.37 times less risky than Kunwu Jiuding. The stock trades about -0.05 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,671 in Kunwu Jiuding Investment on October 16, 2024 and sell it today you would lose (146.00) from holding Kunwu Jiuding Investment or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Kunwu Jiuding Investment |
Do Fluoride and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Kunwu Jiuding
The main advantage of trading using opposite Do Fluoride and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Mengtian Home Group | Do Fluoride vs. Hainan Airlines Co | Do Fluoride vs. Dr Peng Telecom | Do Fluoride vs. Telling Telecommunication Holding |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Hubeiyichang Transportation Group | Kunwu Jiuding vs. China Sports Industry |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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