Correlation Between Kunwu Jiuding and Hangzhou Pinming
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Hangzhou Pinming Software, you can compare the effects of market volatilities on Kunwu Jiuding and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Hangzhou Pinming.
Diversification Opportunities for Kunwu Jiuding and Hangzhou Pinming
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Hangzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Hangzhou Pinming
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 2.41 times less return on investment than Hangzhou Pinming. But when comparing it to its historical volatility, Kunwu Jiuding Investment is 1.04 times less risky than Hangzhou Pinming. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Hangzhou Pinming Software on October 14, 2024 and sell it today you would earn a total of 100.00 from holding Hangzhou Pinming Software or generate 4.8% 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. Hangzhou Pinming Software
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Hangzhou Pinming Software |
Kunwu Jiuding and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Hangzhou Pinming
The main advantage of trading using opposite Kunwu Jiuding and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Kunwu Jiuding vs. Beijing Jiaman Dress | Kunwu Jiuding vs. Anhui Jianghuai Automobile | Kunwu Jiuding vs. Changchun Engley Automobile | Kunwu Jiuding vs. Offshore Oil Engineering |
| Hangzhou Pinming vs. Kunwu Jiuding Investment | Hangzhou Pinming vs. Tieling Newcity Investment | Hangzhou Pinming vs. Cultural Investment Holdings | Hangzhou Pinming vs. China Sports Industry |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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