Correlation Between Kunwu Jiuding and Dawning Information
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Dawning Information Industry, you can compare the effects of market volatilities on Kunwu Jiuding and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Dawning Information.
Diversification Opportunities for Kunwu Jiuding and Dawning Information
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kunwu and Dawning is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Dawning Information go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Dawning Information
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Dawning Information. In addition to that, Kunwu Jiuding is 1.1 times more volatile than Dawning Information Industry. It trades about -0.16 of its total potential returns per unit of risk. Dawning Information Industry is currently generating about -0.12 per unit of volatility. If you would invest 7,848 in Dawning Information Industry on October 28, 2024 and sell it today you would lose (1,198) from holding Dawning Information Industry or give up 15.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Dawning Information Industry
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Dawning Information |
Kunwu Jiuding and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Dawning Information
The main advantage of trading using opposite Kunwu Jiuding and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information'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 |
| Dawning Information vs. Huaibei Mining Holdings | Dawning Information vs. AUPU Home Style | Dawning Information vs. Guangdong Silvere Sci | Dawning Information vs. Zhengzhou Coal Mining |
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.
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