Correlation Between Kunwu Jiuding and New China
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By analyzing existing cross correlation between Kunwu Jiuding Investment and New China Life, you can compare the effects of market volatilities on Kunwu Jiuding and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and New China.
Diversification Opportunities for Kunwu Jiuding and New China
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunwu and New is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and New China go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and New China
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the New China. In addition to that, Kunwu Jiuding is 1.03 times more volatile than New China Life. It trades about -0.12 of its total potential returns per unit of risk. New China Life is currently generating about -0.03 per unit of volatility. If you would invest 4,886 in New China Life on August 26, 2024 and sell it today you would lose (185.00) from holding New China Life or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. New China Life
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| New China Life |
Kunwu Jiuding and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and New China
The main advantage of trading using opposite Kunwu Jiuding and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Kunwu Jiuding vs. New China Life | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 |
| New China vs. Chongqing Changan Automobile | New China vs. Hubei Dinglong Chemical | New China vs. Lianhe Chemical Technology | New China vs. Sinomach Automobile Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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