Correlation Between Kunwu Jiuding and Inly Media
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Inly Media Co, you can compare the effects of market volatilities on Kunwu Jiuding and Inly Media 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 Inly Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Inly Media.
Diversification Opportunities for Kunwu Jiuding and Inly Media
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Inly is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Inly Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inly Media 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 Inly Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inly Media has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Inly Media go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Inly Media
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.8 times less return on investment than Inly Media. But when comparing it to its historical volatility, Kunwu Jiuding Investment is 1.31 times less risky than Inly Media. It trades about 0.12 of its potential returns per unit of risk. Inly Media Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,402 in Inly Media Co on September 2, 2024 and sell it today you would earn a total of 187.00 from holding Inly Media Co or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Inly Media Co
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Inly Media |
Kunwu Jiuding and Inly Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Inly Media
The main advantage of trading using opposite Kunwu Jiuding and Inly Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Inly Media 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 Inly Media will offset losses from the drop in Inly Media's long position.| Kunwu Jiuding vs. Jiangxi Naipu Mining | Kunwu Jiuding vs. Gem Year Industrial Co | Kunwu Jiuding vs. Xinjiang Communications Construction | Kunwu Jiuding vs. Fiberhome Telecommunication Technologies |
| Inly Media vs. Milkyway Chemical Supply | Inly Media vs. Tianshui Huatian Technology | Inly Media vs. Western Superconducting Tech | Inly Media vs. Do Fluoride Chemicals 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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