Correlation Between Kunwu Jiuding and Henan Shuanghui
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Henan Shuanghui Investment, you can compare the effects of market volatilities on Kunwu Jiuding and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Henan Shuanghui.
Diversification Opportunities for Kunwu Jiuding and Henan Shuanghui
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunwu and Henan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Henan Shuanghui
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 2.67 times more return on investment than Henan Shuanghui. However, Kunwu Jiuding is 2.67 times more volatile than Henan Shuanghui Investment. It trades about 0.02 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.01 per unit of risk. If you would invest 1,546 in Kunwu Jiuding Investment on August 28, 2024 and sell it today you would lose (29.00) from holding Kunwu Jiuding Investment or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Henan Shuanghui Inve |
Kunwu Jiuding and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Henan Shuanghui
The main advantage of trading using opposite Kunwu Jiuding and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Kunwu Jiuding vs. Dongguan Chitwing Technology | Kunwu Jiuding vs. Tianjin Ruixin Technology | Kunwu Jiuding vs. Huitong Construction Group | Kunwu Jiuding vs. Ningbo Construction Co |
| Henan Shuanghui vs. China Petroleum Chemical | Henan Shuanghui vs. PetroChina Co Ltd | Henan Shuanghui vs. China State Construction | Henan Shuanghui vs. China Railway Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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