Correlation Between Guangdong Wens and Kontour (Xian)
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Kontour Medical Technology, you can compare the effects of market volatilities on Guangdong Wens and Kontour (Xian) 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 Wens with a short position of Kontour (Xian). Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Kontour (Xian).
Diversification Opportunities for Guangdong Wens and Kontour (Xian)
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Kontour is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff 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 Guangdong Wens 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 Wens Foodstuff are associated (or correlated) with Kontour (Xian). 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 Guangdong Wens i.e., Guangdong Wens and Kontour (Xian) go up and down completely randomly.
Pair Corralation between Guangdong Wens and Kontour (Xian)
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Kontour (Xian). But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.65 times less risky than Kontour (Xian). The stock trades about -0.02 of its potential returns per unit of risk. The Kontour Medical Technology is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,721 in Kontour Medical Technology on November 3, 2024 and sell it today you would earn a total of 257.00 from holding Kontour Medical Technology or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Kontour Medical Technology
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Kontour Medical Tech |
Guangdong Wens and Kontour (Xian) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Kontour (Xian)
The main advantage of trading using opposite Guangdong Wens and Kontour (Xian) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Kontour (Xian) 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 (Xian) will offset losses from the drop in Kontour (Xian)'s long position.| Guangdong Wens vs. Ningbo Tip Rubber | Guangdong Wens vs. Shanghai Action Education | Guangdong Wens vs. China Asset Management | Guangdong Wens vs. China Publishing Media |
| Kontour (Xian) vs. Yuanjie Semiconductor Technology | Kontour (Xian) vs. Chison Medical Technologies | Kontour (Xian) vs. StarPower Semiconductor | Kontour (Xian) vs. Nexchip Semiconductor Corp |
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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