Correlation Between Kunwu Jiuding and Caihong Display
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Caihong Display Devices, you can compare the effects of market volatilities on Kunwu Jiuding and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Caihong Display.
Diversification Opportunities for Kunwu Jiuding and Caihong Display
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kunwu and Caihong is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Caihong Display go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Caihong Display
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Caihong Display. In addition to that, Kunwu Jiuding is 1.25 times more volatile than Caihong Display Devices. It trades about -0.02 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.07 per unit of volatility. If you would invest 714.00 in Caihong Display Devices on October 14, 2024 and sell it today you would earn a total of 70.00 from holding Caihong Display Devices or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Caihong Display Devices
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Caihong Display Devices |
Kunwu Jiuding and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Caihong Display
The main advantage of trading using opposite Kunwu Jiuding and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display'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 |
| Caihong Display vs. Shenzhen SDG Information | Caihong Display vs. Suzhou Douson Drilling | Caihong Display vs. East Money Information | Caihong Display vs. Kunwu Jiuding Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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