Correlation Between Kunwu Jiuding and Ningbo Ligong
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Ningbo Ligong Online, you can compare the effects of market volatilities on Kunwu Jiuding and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Ningbo Ligong.
Diversification Opportunities for Kunwu Jiuding and Ningbo Ligong
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kunwu and Ningbo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Ningbo Ligong
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.94 times more return on investment than Ningbo Ligong. However, Kunwu Jiuding is 1.94 times more volatile than Ningbo Ligong Online. It trades about 0.01 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.12 per unit of risk. If you would invest 1,636 in Kunwu Jiuding Investment on September 1, 2024 and sell it today you would lose (11.00) from holding Kunwu Jiuding Investment or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Ningbo Ligong Online
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Ningbo Ligong Online |
Kunwu Jiuding and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Ningbo Ligong
The main advantage of trading using opposite Kunwu Jiuding and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong'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 |
| Ningbo Ligong vs. Ping An Insurance | Ningbo Ligong vs. Jiangsu Financial Leasing | Ningbo Ligong vs. Servyou Software Group | Ningbo Ligong vs. Qilu Bank 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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