Correlation Between Kunwu Jiuding and Harbin Hatou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Harbin Hatou Investment, you can compare the effects of market volatilities on Kunwu Jiuding and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Harbin Hatou.
Diversification Opportunities for Kunwu Jiuding and Harbin Hatou
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunwu and Harbin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Harbin Hatou go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Harbin Hatou
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.54 times less return on investment than Harbin Hatou. In addition to that, Kunwu Jiuding is 1.31 times more volatile than Harbin Hatou Investment. It trades about 0.02 of its total potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.04 per unit of volatility. If you would invest 479.00 in Harbin Hatou Investment on August 31, 2024 and sell it today you would earn a total of 179.00 from holding Harbin Hatou Investment or generate 37.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Harbin Hatou Investment
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Harbin Hatou Investment |
Kunwu Jiuding and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Harbin Hatou
The main advantage of trading using opposite Kunwu Jiuding and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Contemporary Amperex Technology | Kunwu Jiuding vs. G bits Network Technology | Kunwu Jiuding vs. BYD Co Ltd |
| Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Kweichow Moutai Co | Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. China Mobile Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |