Correlation Between Kunwu Jiuding and Fujian Longzhou
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Kunwu Jiuding and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Fujian Longzhou.
Diversification Opportunities for Kunwu Jiuding and Fujian Longzhou
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Fujian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Fujian Longzhou
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.14 times less return on investment than Fujian Longzhou. But when comparing it to its historical volatility, Kunwu Jiuding Investment is 1.09 times less risky than Fujian Longzhou. It trades about 0.04 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Fujian Longzhou Transportation on August 31, 2024 and sell it today you would earn a total of 129.00 from holding Fujian Longzhou Transportation or generate 32.01% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Fujian Longzhou Tran |
Kunwu Jiuding and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Fujian Longzhou
The main advantage of trading using opposite Kunwu Jiuding and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Contemporary Amperex Technology | Kunwu Jiuding vs. G bits Network Technology | Kunwu Jiuding vs. BYD Co Ltd |
| Fujian Longzhou vs. Cultural Investment Holdings | Fujian Longzhou vs. Gome Telecom Equipment | Fujian Longzhou vs. Bus Online Co | Fujian Longzhou vs. Holitech Technology 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 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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