Correlation Between Kunwu Jiuding and Shandong Sinoglory
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Shandong Sinoglory Health, you can compare the effects of market volatilities on Kunwu Jiuding and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Shandong Sinoglory.
Diversification Opportunities for Kunwu Jiuding and Shandong Sinoglory
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Shandong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Shandong Sinoglory
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.55 times more return on investment than Shandong Sinoglory. However, Kunwu Jiuding is 1.55 times more volatile than Shandong Sinoglory Health. It trades about 0.01 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.03 per unit of risk. If you would invest 1,671 in Kunwu Jiuding Investment on October 13, 2024 and sell it today you would lose (207.00) from holding Kunwu Jiuding Investment or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Shandong Sinoglory Health |
Kunwu Jiuding and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Shandong Sinoglory
The main advantage of trading using opposite Kunwu Jiuding and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Kunwu Jiuding vs. Kidswant Children Products | Kunwu Jiuding vs. Hygon Information Technology | Kunwu Jiuding vs. Sublime China Information | Kunwu Jiuding vs. Sanbo Hospital Management |
| Shandong Sinoglory vs. Shenzhen Centralcon Investment | Shandong Sinoglory vs. Kunwu Jiuding Investment | Shandong Sinoglory vs. Thunder Software Technology | Shandong Sinoglory vs. Fujian Boss Software |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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