Correlation Between Kunwu Jiuding and Datang HuaYin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Datang HuaYin Electric, you can compare the effects of market volatilities on Kunwu Jiuding and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Datang HuaYin.
Diversification Opportunities for Kunwu Jiuding and Datang HuaYin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Datang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Datang HuaYin go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Datang HuaYin
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Datang HuaYin. In addition to that, Kunwu Jiuding is 1.27 times more volatile than Datang HuaYin Electric. It trades about -0.01 of its total potential returns per unit of risk. Datang HuaYin Electric is currently generating about 0.06 per unit of volatility. If you would invest 356.00 in Datang HuaYin Electric on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Datang HuaYin Electric or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Datang HuaYin Electric
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Datang HuaYin Electric |
Kunwu Jiuding and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Datang HuaYin
The main advantage of trading using opposite Kunwu Jiuding and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |