Correlation Between Kunwu Jiuding and Jilin Chemical
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Jilin Chemical Fibre, you can compare the effects of market volatilities on Kunwu Jiuding and Jilin Chemical 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 Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Jilin Chemical.
Diversification Opportunities for Kunwu Jiuding and Jilin Chemical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Jilin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre 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 Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Jilin Chemical go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Jilin Chemical
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.24 times more return on investment than Jilin Chemical. However, Kunwu Jiuding is 1.24 times more volatile than Jilin Chemical Fibre. It trades about 0.01 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.09 per unit of risk. If you would invest 1,636 in Kunwu Jiuding Investment on September 1, 2024 and sell it today you would lose (11.00) from holding Kunwu Jiuding Investment or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Jilin Chemical Fibre |
Kunwu Jiuding and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Jilin Chemical
The main advantage of trading using opposite Kunwu Jiuding and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Kunwu Jiuding vs. BeiGene | Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Beijing Roborock Technology | Kunwu Jiuding vs. G bits Network Technology |
| Jilin Chemical vs. Xiwang Foodstuffs Co | Jilin Chemical vs. Yingde Greatchem Chemicals | Jilin Chemical vs. Miracll Chemicals Co | Jilin Chemical vs. Youyou Foods Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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