Correlation Between Konfoong Materials and Dongxing Sec
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By analyzing existing cross correlation between Konfoong Materials International and Dongxing Sec Co, you can compare the effects of market volatilities on Konfoong Materials and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Dongxing Sec.
Diversification Opportunities for Konfoong Materials and Dongxing Sec
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Konfoong and Dongxing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Konfoong Materials i.e., Konfoong Materials and Dongxing Sec go up and down completely randomly.
Pair Corralation between Konfoong Materials and Dongxing Sec
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 0.78 times more return on investment than Dongxing Sec. However, Konfoong Materials International is 1.29 times less risky than Dongxing Sec. It trades about 0.22 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.07 per unit of risk. If you would invest 6,535 in Konfoong Materials International on November 3, 2024 and sell it today you would earn a total of 494.00 from holding Konfoong Materials International or generate 7.56% 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. Dongxing Sec Co
Performance |
| Timeline |
| Konfoong Materials |
| Dongxing Sec |
Konfoong Materials and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Dongxing Sec
The main advantage of trading using opposite Konfoong Materials and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Konfoong Materials vs. Namchow Food Group | Konfoong Materials vs. Hubei Xingfa Chemicals | Konfoong Materials vs. Zhejiang Huatong Meat | Konfoong Materials vs. Youyou Foods Co |
| Dongxing Sec vs. Xiangyang Automobile Bearing | Dongxing Sec vs. Bank of Communications | Dongxing Sec vs. China Mobile Limited | Dongxing Sec vs. YiDong Electronics Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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