Correlation Between Konfoong Materials and Guangzhou Tinci
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By analyzing existing cross correlation between Konfoong Materials International and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Konfoong Materials and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Guangzhou Tinci.
Diversification Opportunities for Konfoong Materials and Guangzhou Tinci
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Konfoong and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Konfoong Materials and Guangzhou Tinci
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 1.08 times more return on investment than Guangzhou Tinci. However, Konfoong Materials is 1.08 times more volatile than Guangzhou Tinci Materials. It trades about 0.07 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.05 per unit of risk. If you would invest 5,482 in Konfoong Materials International on October 18, 2024 and sell it today you would earn a total of 1,431 from holding Konfoong Materials International or generate 26.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Konfoong Materials |
| Guangzhou Tinci Materials |
Konfoong Materials and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Guangzhou Tinci
The main advantage of trading using opposite Konfoong Materials and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Konfoong Materials vs. Double Medical Technology | Konfoong Materials vs. Allmed Medical Products | Konfoong Materials vs. Zhonghong Pulin Medical | Konfoong Materials vs. Shandong Publishing Media |
| Guangzhou Tinci vs. Rising Nonferrous Metals | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Anhui Transport Consulting | Guangzhou Tinci vs. Xinjiang Beixin RoadBridge |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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