Correlation Between Kunwu Jiuding and Guangzhou Seagull
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Kunwu Jiuding and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Guangzhou Seagull.
Diversification Opportunities for Kunwu Jiuding and Guangzhou Seagull
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Guangzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Guangzhou Seagull
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Guangzhou Seagull. In addition to that, Kunwu Jiuding is 1.28 times more volatile than Guangzhou Seagull Kitchen. It trades about -0.04 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.01 per unit of volatility. If you would invest 286.00 in Guangzhou Seagull Kitchen on November 3, 2024 and sell it today you would lose (1.00) from holding Guangzhou Seagull Kitchen or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Guangzhou Seagull Kitchen |
Kunwu Jiuding and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Guangzhou Seagull
The main advantage of trading using opposite Kunwu Jiuding and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Kunwu Jiuding vs. Jiamei Food Packaging | Kunwu Jiuding vs. Jiajia Food Group | Kunwu Jiuding vs. V V Food | Kunwu Jiuding vs. JuneYao Dairy Co |
| Guangzhou Seagull vs. Dazhong Transportation Group | Guangzhou Seagull vs. Jiamei Food Packaging | Guangzhou Seagull vs. RoadMain T Co | Guangzhou Seagull vs. HaiXin Foods Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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