Correlation Between Kunwu Jiuding and Zotye Automobile
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Zotye Automobile Co, you can compare the effects of market volatilities on Kunwu Jiuding and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Zotye Automobile.
Diversification Opportunities for Kunwu Jiuding and Zotye Automobile
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunwu and Zotye is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Zotye Automobile go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Zotye Automobile
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.26 times more return on investment than Zotye Automobile. However, Kunwu Jiuding is 1.26 times more volatile than Zotye Automobile Co. It trades about 0.03 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.07 per unit of risk. If you would invest 1,281 in Kunwu Jiuding Investment on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Kunwu Jiuding Investment or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Zotye Automobile Co
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Zotye Automobile |
Kunwu Jiuding and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Zotye Automobile
The main advantage of trading using opposite Kunwu Jiuding and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding vs. Loctek Ergonomic Technology |
| Zotye Automobile vs. Queclink Wireless Solutions | Zotye Automobile vs. Nanjing Putian Telecommunications | Zotye Automobile vs. Tongyu Communication | Zotye Automobile vs. China Mobile Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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