Correlation Between Kunwu Jiuding and Tianjin Yiyi
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Tianjin Yiyi Hygiene, you can compare the effects of market volatilities on Kunwu Jiuding and Tianjin Yiyi 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 Tianjin Yiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Tianjin Yiyi.
Diversification Opportunities for Kunwu Jiuding and Tianjin Yiyi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Tianjin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Tianjin Yiyi Hygiene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Yiyi Hygiene 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 Tianjin Yiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Yiyi Hygiene has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Tianjin Yiyi go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Tianjin Yiyi
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Tianjin Yiyi. But the stock apears to be less risky and, when comparing its historical volatility, Kunwu Jiuding Investment is 1.32 times less risky than Tianjin Yiyi. The stock trades about -0.05 of its potential returns per unit of risk. The Tianjin Yiyi Hygiene is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Tianjin Yiyi Hygiene on September 13, 2024 and sell it today you would earn a total of 187.00 from holding Tianjin Yiyi Hygiene or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Tianjin Yiyi Hygiene
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Tianjin Yiyi Hygiene |
Kunwu Jiuding and Tianjin Yiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Tianjin Yiyi
The main advantage of trading using opposite Kunwu Jiuding and Tianjin Yiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Tianjin Yiyi 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 Tianjin Yiyi will offset losses from the drop in Tianjin Yiyi's long position.| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. NAURA Technology Group | Kunwu Jiuding vs. Zhejiang Orient Gene | Kunwu Jiuding vs. APT Medical |
| Tianjin Yiyi vs. Agricultural Bank of | Tianjin Yiyi vs. Industrial and Commercial | Tianjin Yiyi vs. Bank of China | Tianjin Yiyi vs. PetroChina Co Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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