Correlation Between Konfoong Materials and Hunan Mendale
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By analyzing existing cross correlation between Konfoong Materials International and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Konfoong Materials and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Hunan Mendale.
Diversification Opportunities for Konfoong Materials and Hunan Mendale
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Konfoong and Hunan is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Hunan Mendale go up and down completely randomly.
Pair Corralation between Konfoong Materials and Hunan Mendale
Assuming the 90 days trading horizon Konfoong Materials International is expected to under-perform the Hunan Mendale. But the stock apears to be less risky and, when comparing its historical volatility, Konfoong Materials International is 2.68 times less risky than Hunan Mendale. The stock trades about -0.24 of its potential returns per unit of risk. The Hunan Mendale Hometextile is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 335.00 in Hunan Mendale Hometextile on October 12, 2024 and sell it today you would earn a total of 41.00 from holding Hunan Mendale Hometextile or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Konfoong Materials |
| Hunan Mendale Hometextile |
Konfoong Materials and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Hunan Mendale
The main advantage of trading using opposite Konfoong Materials and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Konfoong Materials vs. Sinofibers Technology Co | Konfoong Materials vs. Miracll Chemicals Co | Konfoong Materials vs. Xizi Clean Energy | Konfoong Materials vs. Jinhe Biotechnology Co |
| Hunan Mendale vs. Allwin Telecommunication Co | Hunan Mendale vs. Kangxin New Materials | Hunan Mendale vs. Konfoong Materials International | Hunan Mendale vs. Fibocom Wireless |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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