Correlation Between Kunwu Jiuding and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Kunwu Jiuding and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Hubei Xingfa.
Diversification Opportunities for Kunwu Jiuding and Hubei Xingfa
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Hubei is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Hubei Xingfa
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Hubei Xingfa. In addition to that, Kunwu Jiuding is 1.6 times more volatile than Hubei Xingfa Chemicals. It trades about -0.05 of its total potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.05 per unit of volatility. If you would invest 2,320 in Hubei Xingfa Chemicals on October 25, 2024 and sell it today you would lose (183.00) from holding Hubei Xingfa Chemicals or give up 7.89% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Hubei Xingfa Chemicals |
Kunwu Jiuding and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Hubei Xingfa
The main advantage of trading using opposite Kunwu Jiuding and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa'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 |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Rongsheng Petrochemical 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |