Correlation Between Kunwu Jiuding and Metallurgical
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Metallurgical of, you can compare the effects of market volatilities on Kunwu Jiuding and Metallurgical 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 Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Metallurgical.
Diversification Opportunities for Kunwu Jiuding and Metallurgical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Metallurgical is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Metallurgical of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallurgical 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 Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallurgical has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Metallurgical go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Metallurgical
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.5 times more return on investment than Metallurgical. However, Kunwu Jiuding is 1.5 times more volatile than Metallurgical of. It trades about 0.02 of its potential returns per unit of risk. Metallurgical of is currently generating about 0.01 per unit of risk. If you would invest 1,285 in Kunwu Jiuding Investment on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Kunwu Jiuding Investment or generate 0.23% 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. Metallurgical of
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Metallurgical |
Kunwu Jiuding and Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Metallurgical
The main advantage of trading using opposite Kunwu Jiuding and Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Metallurgical 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 Metallurgical will offset losses from the drop in Metallurgical's long position.| Kunwu Jiuding vs. Tieling Newcity Investment | Kunwu Jiuding vs. Anhui Shiny Electronic | Kunwu Jiuding vs. Luyin Investment Group | Kunwu Jiuding vs. Cultural Investment Holdings |
| Metallurgical vs. Cabio Biotech Wuhan | Metallurgical vs. Montage Technology Co | Metallurgical vs. Shandong Intco Medical | Metallurgical vs. XiaMen HongXin Electron tech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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