Correlation Between Kunwu Jiuding and Shenzhen Centralcon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Kunwu Jiuding and Shenzhen Centralcon 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 Kunwu Jiuding with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Shenzhen Centralcon.
Diversification Opportunities for Kunwu Jiuding and Shenzhen Centralcon
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Kunwu Jiuding 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 Kunwu Jiuding Investment are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Shenzhen Centralcon
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Kunwu Jiuding Investment is 1.18 times less risky than Shenzhen Centralcon. The stock trades about -0.05 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Shenzhen Centralcon Investment on September 25, 2024 and sell it today you would earn a total of 2.00 from holding Shenzhen Centralcon Investment or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Shenzhen Centralcon |
Kunwu Jiuding and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Shenzhen Centralcon
The main advantage of trading using opposite Kunwu Jiuding and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding vs. Loctek Ergonomic Technology |
| Shenzhen Centralcon vs. PetroChina Co Ltd | Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. CNOOC Limited | Shenzhen Centralcon vs. Ping An Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |