Correlation Between Konfoong Materials and Zhejiang Construction
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By analyzing existing cross correlation between Konfoong Materials International and Zhejiang Construction Investment, you can compare the effects of market volatilities on Konfoong Materials and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Zhejiang Construction.
Diversification Opportunities for Konfoong Materials and Zhejiang Construction
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Konfoong and Zhejiang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Konfoong Materials and Zhejiang Construction
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 1.09 times more return on investment than Zhejiang Construction. However, Konfoong Materials is 1.09 times more volatile than Zhejiang Construction Investment. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.06 per unit of risk. If you would invest 7,357 in Konfoong Materials International on October 12, 2024 and sell it today you would lose (688.00) from holding Konfoong Materials International or give up 9.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Konfoong Materials |
| Zhejiang Construction |
Konfoong Materials and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Zhejiang Construction
The main advantage of trading using opposite Konfoong Materials and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Konfoong Materials vs. Peoples Insurance of | Konfoong Materials vs. Sportsoul Co Ltd | Konfoong Materials vs. Heilongjiang Transport Development | Konfoong Materials vs. Fujian Longzhou Transportation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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