Correlation Between Shenzhen and Kunwu Jiuding
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By analyzing existing cross correlation between Shenzhen AV Display Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Shenzhen and Kunwu Jiuding 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 Shenzhen with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Kunwu Jiuding.
Diversification Opportunities for Shenzhen and Kunwu Jiuding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Kunwu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Shenzhen 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 Shenzhen AV Display Co are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Shenzhen i.e., Shenzhen and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Shenzhen and Kunwu Jiuding
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen AV Display Co is 1.2 times less risky than Kunwu Jiuding. The stock trades about -0.18 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Kunwu Jiuding Investment on October 25, 2024 and sell it today you would lose (60.00) from holding Kunwu Jiuding Investment or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Shenzhen AV Display |
| Kunwu Jiuding Investment |
Shenzhen and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Kunwu Jiuding
The main advantage of trading using opposite Shenzhen and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Shenzhen vs. Digiwin Software Co | Shenzhen vs. Uxi Unicomp Technology | Shenzhen vs. Wondershare Technology Co | Shenzhen vs. Soyea Technology Co |
| Kunwu Jiuding vs. Gansu Jiu Steel | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. Aba Chemicals Corp | Kunwu Jiuding vs. Loctek Ergonomic 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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