Correlation Between Konfoong Materials and Sichuan Newsnet
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By analyzing existing cross correlation between Konfoong Materials International and Sichuan Newsnet Media, you can compare the effects of market volatilities on Konfoong Materials and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Sichuan Newsnet.
Diversification Opportunities for Konfoong Materials and Sichuan Newsnet
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Konfoong and Sichuan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Konfoong Materials and Sichuan Newsnet
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 1.07 times more return on investment than Sichuan Newsnet. However, Konfoong Materials is 1.07 times more volatile than Sichuan Newsnet Media. It trades about 0.07 of its potential returns per unit of risk. Sichuan Newsnet Media 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Konfoong Materials |
| Sichuan Newsnet Media |
Konfoong Materials and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Sichuan Newsnet
The main advantage of trading using opposite Konfoong Materials and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet'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 |
| Sichuan Newsnet vs. Konfoong Materials International | Sichuan Newsnet vs. Jinsanjiang Silicon Material | Sichuan Newsnet vs. Chongqing Sulian Plastic | Sichuan Newsnet vs. Guangzhou Tinci Materials |
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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