Correlation Between Konfoong Materials and Gansu Huangtai
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By analyzing existing cross correlation between Konfoong Materials International and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Konfoong Materials and Gansu Huangtai 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 Konfoong Materials with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Gansu Huangtai.
Diversification Opportunities for Konfoong Materials and Gansu Huangtai
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konfoong and Gansu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Konfoong Materials 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 Konfoong Materials International are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Konfoong Materials and Gansu Huangtai
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 0.4 times more return on investment than Gansu Huangtai. However, Konfoong Materials International is 2.49 times less risky than Gansu Huangtai. It trades about 0.22 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.12 per unit of risk. If you would invest 6,535 in Konfoong Materials International on November 3, 2024 and sell it today you would earn a total of 494.00 from holding Konfoong Materials International or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Konfoong Materials |
| Gansu Huangtai Wine |
Konfoong Materials and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Gansu Huangtai
The main advantage of trading using opposite Konfoong Materials and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Konfoong Materials vs. Namchow Food Group | Konfoong Materials vs. Hubei Xingfa Chemicals | Konfoong Materials vs. Zhejiang Huatong Meat | Konfoong Materials vs. Youyou Foods Co |
| Gansu Huangtai vs. Harbin Air Conditioning | Gansu Huangtai vs. Dr Peng Telecom | Gansu Huangtai vs. Vats Liquor Chain | Gansu Huangtai 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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