Correlation Between Chongqing Brewery and Kunwu Jiuding
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By analyzing existing cross correlation between Chongqing Brewery Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Chongqing Brewery and Kunwu Jiuding 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 Chongqing Brewery with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Kunwu Jiuding.
Diversification Opportunities for Chongqing Brewery and Kunwu Jiuding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Kunwu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Kunwu Jiuding
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.5 times less risky than Kunwu Jiuding. The stock trades about -0.06 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,669 in Kunwu Jiuding Investment on October 11, 2024 and sell it today you would lose (333.00) from holding Kunwu Jiuding Investment or give up 19.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Chongqing Brewery |
| Kunwu Jiuding Investment |
Chongqing Brewery and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Kunwu Jiuding
The main advantage of trading using opposite Chongqing Brewery and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Chongqing Brewery vs. Miracll Chemicals Co | Chongqing Brewery vs. China Life Insurance | Chongqing Brewery vs. Xinxiang Chemical Fiber | Chongqing Brewery vs. Shenzhen Noposion Agrochemicals |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. Sportsoul Co Ltd | Kunwu Jiuding vs. Chongqing Brewery Co | Kunwu Jiuding vs. Jiangsu Jinling Sports |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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