Correlation Between Xiamen Bank and Kontour Medical
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By analyzing existing cross correlation between Xiamen Bank Co and Kontour Medical Technology, you can compare the effects of market volatilities on Xiamen Bank and Kontour Medical 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 Xiamen Bank with a short position of Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Kontour Medical.
Diversification Opportunities for Xiamen Bank and Kontour Medical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Kontour is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Kontour Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontour Medical Tech and Xiamen Bank 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 Xiamen Bank Co are associated (or correlated) with Kontour Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontour Medical Tech has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Kontour Medical go up and down completely randomly.
Pair Corralation between Xiamen Bank and Kontour Medical
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 1.64 times less return on investment than Kontour Medical. But when comparing it to its historical volatility, Xiamen Bank Co is 1.5 times less risky than Kontour Medical. It trades about 0.2 of its potential returns per unit of risk. Kontour Medical Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,660 in Kontour Medical Technology on September 5, 2024 and sell it today you would earn a total of 389.00 from holding Kontour Medical Technology or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Kontour Medical Technology
Performance |
| Timeline |
| Xiamen Bank |
| Kontour Medical Tech |
Xiamen Bank and Kontour Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Kontour Medical
The main advantage of trading using opposite Xiamen Bank and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Kontour Medical 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 Kontour Medical will offset losses from the drop in Kontour Medical's long position.| Xiamen Bank vs. Jiangsu Jinling Sports | Xiamen Bank vs. Everdisplay Optronics Shanghai | Xiamen Bank vs. Chengdu Spaceon Electronics | Xiamen Bank vs. CICC Fund Management |
| Kontour Medical vs. Kweichow Moutai Co | Kontour Medical vs. Contemporary Amperex Technology | Kontour Medical vs. G bits Network Technology | Kontour Medical vs. Beijing Roborock Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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