Correlation Between Kunwu Jiuding and Dongxing Sec
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Dongxing Sec Co, you can compare the effects of market volatilities on Kunwu Jiuding and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Dongxing Sec.
Diversification Opportunities for Kunwu Jiuding and Dongxing Sec
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Dongxing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Dongxing Sec go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Dongxing Sec
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 0.83 times more return on investment than Dongxing Sec. However, Kunwu Jiuding Investment is 1.21 times less risky than Dongxing Sec. It trades about 0.11 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.08 per unit of risk. If you would invest 1,564 in Kunwu Jiuding Investment on September 4, 2024 and sell it today you would earn a total of 101.00 from holding Kunwu Jiuding Investment or generate 6.46% 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. Dongxing Sec Co
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Dongxing Sec |
Kunwu Jiuding and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Dongxing Sec
The main advantage of trading using opposite Kunwu Jiuding and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Kunwu Jiuding vs. Industrial and Commercial | Kunwu Jiuding vs. Agricultural Bank of | Kunwu Jiuding vs. China Construction Bank | Kunwu Jiuding vs. Bank of China |
| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
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