Correlation Between Konfoong Materials and Zhonghong Pulin
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By analyzing existing cross correlation between Konfoong Materials International and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Konfoong Materials and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Zhonghong Pulin.
Diversification Opportunities for Konfoong Materials and Zhonghong Pulin
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Konfoong and Zhonghong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Konfoong Materials and Zhonghong Pulin
Assuming the 90 days trading horizon Konfoong Materials is expected to generate 1.2 times less return on investment than Zhonghong Pulin. In addition to that, Konfoong Materials is 1.04 times more volatile than Zhonghong Pulin Medical. It trades about 0.07 of its total potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.08 per unit of volatility. If you would invest 925.00 in Zhonghong Pulin Medical on October 18, 2024 and sell it today you would earn a total of 326.00 from holding Zhonghong Pulin Medical or generate 35.24% 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. Zhonghong Pulin Medical
Performance |
| Timeline |
| Konfoong Materials |
| Zhonghong Pulin Medical |
Konfoong Materials and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Zhonghong Pulin
The main advantage of trading using opposite Konfoong Materials and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin'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 |
| Zhonghong Pulin vs. Shenzhen SDG Information | Zhonghong Pulin vs. Humanwell Healthcare Group | Zhonghong Pulin vs. Yindu Kitchen Equipment | Zhonghong Pulin vs. State Grid InformationCommunication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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