Correlation Between Kunwu Jiuding and Qingdao Choho
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Qingdao Choho Industrial, you can compare the effects of market volatilities on Kunwu Jiuding and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Qingdao Choho.
Diversification Opportunities for Kunwu Jiuding and Qingdao Choho
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunwu and Qingdao is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Qingdao Choho go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Qingdao Choho
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.76 times more return on investment than Qingdao Choho. However, Kunwu Jiuding is 1.76 times more volatile than Qingdao Choho Industrial. It trades about -0.1 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about -0.29 per unit of risk. If you would invest 1,598 in Kunwu Jiuding Investment on October 14, 2024 and sell it today you would lose (134.00) from holding Kunwu Jiuding Investment or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Qingdao Choho Industrial |
Kunwu Jiuding and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Qingdao Choho
The main advantage of trading using opposite Kunwu Jiuding and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Kunwu Jiuding vs. Beijing Jiaman Dress | Kunwu Jiuding vs. Anhui Jianghuai Automobile | Kunwu Jiuding vs. Changchun Engley Automobile | Kunwu Jiuding vs. Offshore Oil Engineering |
| Qingdao Choho vs. Juewei Food Co | Qingdao Choho vs. Eastroc Beverage Group | Qingdao Choho vs. Impulse Qingdao Health | Qingdao Choho vs. Zhengzhou Qianweiyangchu Food |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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