Correlation Between Kunwu Jiuding and Anhui Jinhe
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Kunwu Jiuding and Anhui Jinhe 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 Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Anhui Jinhe.
Diversification Opportunities for Kunwu Jiuding and Anhui Jinhe
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunwu and Anhui is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Anhui Jinhe
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Anhui Jinhe. In addition to that, Kunwu Jiuding is 2.11 times more volatile than Anhui Jinhe Industrial. It trades about -0.04 of its total potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.16 per unit of volatility. If you would invest 2,285 in Anhui Jinhe Industrial on October 25, 2024 and sell it today you would earn a total of 125.00 from holding Anhui Jinhe Industrial or generate 5.47% 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. Anhui Jinhe Industrial
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Anhui Jinhe Industrial |
Kunwu Jiuding and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Anhui Jinhe
The main advantage of trading using opposite Kunwu Jiuding and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Kunwu Jiuding vs. Gansu Jiu Steel | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. Aba Chemicals Corp | Kunwu Jiuding vs. Loctek Ergonomic Technology |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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