Correlation Between Songz Automobile and Kunwu Jiuding
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By analyzing existing cross correlation between Songz Automobile Air and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Kunwu Jiuding.
Diversification Opportunities for Songz Automobile and Kunwu Jiuding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and Kunwu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Songz Automobile and Kunwu Jiuding
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.49 times more return on investment than Kunwu Jiuding. However, Songz Automobile Air is 2.03 times less risky than Kunwu Jiuding. It trades about 0.1 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.04 per unit of risk. If you would invest 645.00 in Songz Automobile Air on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Songz Automobile Air or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Songz Automobile Air |
| Kunwu Jiuding Investment |
Songz Automobile and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Kunwu Jiuding
The main advantage of trading using opposite Songz Automobile and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. Jiangyin Jianghua Microelectronics | Songz Automobile vs. Sunwoda Electronic | Songz Automobile vs. Tonghua Grape Wine | Songz Automobile vs. JuneYao Dairy Co |
| Kunwu Jiuding vs. Dalian Thermal Power | Kunwu Jiuding vs. Zhengzhou Coal Mining | Kunwu Jiuding vs. Guangdong Qunxing Toys | Kunwu Jiuding vs. Hainan Mining 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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