Correlation Between Wuhan Xianglong and Kunwu Jiuding
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By analyzing existing cross correlation between Wuhan Xianglong Power and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Kunwu Jiuding.
Diversification Opportunities for Wuhan Xianglong and Kunwu Jiuding
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Kunwu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Kunwu Jiuding
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.61 times more return on investment than Kunwu Jiuding. However, Wuhan Xianglong is 1.61 times more volatile than Kunwu Jiuding Investment. It trades about 0.04 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.03 per unit of risk. If you would invest 1,152 in Wuhan Xianglong Power on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Wuhan Xianglong Power or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Kunwu Jiuding Investment |
Wuhan Xianglong and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Kunwu Jiuding
The main advantage of trading using opposite Wuhan Xianglong and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. AUPU Home Style | Wuhan Xianglong vs. Zoy Home Furnishing | Wuhan Xianglong vs. Qumei Furniture Group | Wuhan Xianglong vs. Dareway Software Co |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Anhui Gujing Distillery | Kunwu Jiuding vs. Anhui Transport Consulting |
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 CEOs Directory module to screen CEOs from public companies around the world.
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