Correlation Between Kunwu Jiuding and Sportsoul
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Sportsoul Co Ltd, you can compare the effects of market volatilities on Kunwu Jiuding and Sportsoul 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 Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Sportsoul.
Diversification Opportunities for Kunwu Jiuding and Sportsoul
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Sportsoul is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul 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 Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Sportsoul go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Sportsoul
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.16 times less return on investment than Sportsoul. In addition to that, Kunwu Jiuding is 1.2 times more volatile than Sportsoul Co Ltd. It trades about 0.06 of its total potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.09 per unit of volatility. If you would invest 1,207 in Sportsoul Co Ltd on September 3, 2024 and sell it today you would earn a total of 357.00 from holding Sportsoul Co Ltd or generate 29.58% 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. Sportsoul Co Ltd
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Sportsoul |
Kunwu Jiuding and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Sportsoul
The main advantage of trading using opposite Kunwu Jiuding and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Kunwu Jiuding vs. Zhejiang Kingland Pipeline | Kunwu Jiuding vs. Semiconductor Manufacturing Electronics | Kunwu Jiuding vs. StarPower Semiconductor | Kunwu Jiuding vs. Union Semiconductor Co |
| Sportsoul vs. PetroChina Co Ltd | Sportsoul vs. China Mobile Limited | Sportsoul vs. Industrial and Commercial | Sportsoul vs. China Life Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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