Correlation Between Kunwu Jiuding and Yunnan Hongxiang
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Yunnan Hongxiang Yixintang, you can compare the effects of market volatilities on Kunwu Jiuding and Yunnan Hongxiang 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 Yunnan Hongxiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Yunnan Hongxiang.
Diversification Opportunities for Kunwu Jiuding and Yunnan Hongxiang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunwu and Yunnan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Yunnan Hongxiang Yixintang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Hongxiang Yix 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 Yunnan Hongxiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Hongxiang Yix has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Yunnan Hongxiang go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Yunnan Hongxiang
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.87 times more return on investment than Yunnan Hongxiang. However, Kunwu Jiuding is 1.87 times more volatile than Yunnan Hongxiang Yixintang. It trades about 0.12 of its potential returns per unit of risk. Yunnan Hongxiang Yixintang is currently generating about -0.11 per unit of risk. If you would invest 1,516 in Kunwu Jiuding Investment on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Kunwu Jiuding Investment or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Yunnan Hongxiang Yixintang
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Yunnan Hongxiang Yix |
Kunwu Jiuding and Yunnan Hongxiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Yunnan Hongxiang
The main advantage of trading using opposite Kunwu Jiuding and Yunnan Hongxiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Yunnan Hongxiang 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 Yunnan Hongxiang will offset losses from the drop in Yunnan Hongxiang's long position.| Kunwu Jiuding vs. Jiangxi Naipu Mining | Kunwu Jiuding vs. Gem Year Industrial Co | Kunwu Jiuding vs. Xinjiang Communications Construction | Kunwu Jiuding vs. Fiberhome Telecommunication Technologies |
| Yunnan Hongxiang vs. Nanjing Putian Telecommunications | Yunnan Hongxiang vs. Shenzhen Hifuture Electric | Yunnan Hongxiang vs. Tianjin Realty Development | Yunnan Hongxiang vs. Shenyang Huitian Thermal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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