Correlation Between Guangdong Shenglu and Kunwu Jiuding
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Kunwu Jiuding.
Diversification Opportunities for Guangdong Shenglu and Kunwu Jiuding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Kunwu is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Kunwu Jiuding
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.02 times less risky than Kunwu Jiuding. The stock trades about -0.36 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about -0.33 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Kunwu Jiuding Investment on October 11, 2024 and sell it today you would lose (294.00) from holding Kunwu Jiuding Investment or give up 18.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Guangdong Shenglu |
| Kunwu Jiuding Investment |
Guangdong Shenglu and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Kunwu Jiuding
The main advantage of trading using opposite Guangdong Shenglu and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. Zhejiang Orient Gene | Guangdong Shenglu vs. APT Medical |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. Sportsoul Co Ltd | Kunwu Jiuding vs. Chongqing Brewery Co | Kunwu Jiuding vs. Jiangsu Jinling Sports |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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