Correlation Between Kunwu Jiuding and Guangzhou Automobile
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Guangzhou Automobile Group, you can compare the effects of market volatilities on Kunwu Jiuding and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Guangzhou Automobile.
Diversification Opportunities for Kunwu Jiuding and Guangzhou Automobile
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Guangzhou Automobile
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.91 times more return on investment than Guangzhou Automobile. However, Kunwu Jiuding is 1.91 times more volatile than Guangzhou Automobile Group. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about -0.01 per unit of risk. If you would invest 1,485 in Kunwu Jiuding Investment on September 14, 2024 and sell it today you would earn a total of 168.00 from holding Kunwu Jiuding Investment or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Guangzhou Automobile |
Kunwu Jiuding and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Guangzhou Automobile
The main advantage of trading using opposite Kunwu Jiuding and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile'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 |
| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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