Correlation Between Kunwu Jiuding and Xiandai Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Xiandai Investment Co, you can compare the effects of market volatilities on Kunwu Jiuding and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Xiandai Investment.
Diversification Opportunities for Kunwu Jiuding and Xiandai Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Xiandai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Xiandai Investment go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Xiandai Investment
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 21.15 times less return on investment than Xiandai Investment. In addition to that, Kunwu Jiuding is 1.23 times more volatile than Xiandai Investment Co. It trades about 0.01 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.19 per unit of volatility. If you would invest 414.00 in Xiandai Investment Co on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.59% 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. Xiandai Investment Co
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Xiandai Investment |
Kunwu Jiuding and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Xiandai Investment
The main advantage of trading using opposite Kunwu Jiuding and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment'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 |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |