Correlation Between Aba Chemicals and Kunshan Guoli
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By analyzing existing cross correlation between Aba Chemicals Corp and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Aba Chemicals and Kunshan Guoli 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 Aba Chemicals with a short position of Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Kunshan Guoli.
Diversification Opportunities for Aba Chemicals and Kunshan Guoli
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and Kunshan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Aba Chemicals and Kunshan Guoli
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 0.86 times more return on investment than Kunshan Guoli. However, Aba Chemicals Corp is 1.17 times less risky than Kunshan Guoli. It trades about -0.1 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.17 per unit of risk. If you would invest 877.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would lose (63.00) from holding Aba Chemicals Corp or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Aba Chemicals Corp |
| Kunshan Guoli Electronic |
Aba Chemicals and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Kunshan Guoli
The main advantage of trading using opposite Aba Chemicals and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Kunshan Guoli vs. Gansu Jiu Steel | Kunshan Guoli vs. Shandong Mining Machinery | Kunshan Guoli vs. Aba Chemicals Corp | Kunshan Guoli vs. BlueFocus Communication Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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