Correlation Between Kunwu Jiuding and Shanxi Lanhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Kunwu Jiuding and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Shanxi Lanhua.
Diversification Opportunities for Kunwu Jiuding and Shanxi Lanhua
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Shanxi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Shanxi Lanhua
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.72 times more return on investment than Shanxi Lanhua. However, Kunwu Jiuding is 1.72 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.0 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.0 per unit of risk. If you would invest 1,818 in Kunwu Jiuding Investment on September 21, 2024 and sell it today you would lose (288.00) from holding Kunwu Jiuding Investment or give up 15.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Shanxi Lanhua Sci |
Kunwu Jiuding and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Shanxi Lanhua
The main advantage of trading using opposite Kunwu Jiuding and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Kunwu Jiuding vs. Ningbo Construction Co | Kunwu Jiuding vs. Shanghai Construction Group | Kunwu Jiuding vs. Hunan Tyen Machinery | Kunwu Jiuding vs. Hefei Metalforming Mach |
| Shanxi Lanhua vs. Tongyu Communication | Shanxi Lanhua vs. Guangdong Shenglu Telecommunication | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Zhongshan Public Utilities |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |