Correlation Between Kunwu Jiuding and Suzhou Industrial
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Suzhou Industrial Park, you can compare the effects of market volatilities on Kunwu Jiuding and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Suzhou Industrial.
Diversification Opportunities for Kunwu Jiuding and Suzhou Industrial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kunwu and Suzhou is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Suzhou Industrial
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 0.49 times more return on investment than Suzhou Industrial. However, Kunwu Jiuding Investment is 2.03 times less risky than Suzhou Industrial. It trades about -0.04 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.05 per unit of risk. If you would invest 1,500 in Kunwu Jiuding Investment on October 25, 2024 and sell it today you would lose (60.00) from holding Kunwu Jiuding Investment or give up 4.0% 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. Suzhou Industrial Park
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Suzhou Industrial Park |
Kunwu Jiuding and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Suzhou Industrial
The main advantage of trading using opposite Kunwu Jiuding and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial'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 |
| Suzhou Industrial vs. Kweichow Moutai Co | Suzhou Industrial vs. Contemporary Amperex Technology | Suzhou Industrial vs. Beijing Roborock Technology | Suzhou Industrial vs. BYD Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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