Correlation Between Yonghui Superstores and Kunwu Jiuding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yonghui Superstores Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Yonghui Superstores 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 Yonghui Superstores with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Kunwu Jiuding.
Diversification Opportunities for Yonghui Superstores and Kunwu Jiuding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yonghui and Kunwu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores 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 Yonghui Superstores 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 Yonghui Superstores 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 Yonghui Superstores i.e., Yonghui Superstores and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Kunwu Jiuding
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 1.44 times more return on investment than Kunwu Jiuding. However, Yonghui Superstores is 1.44 times more volatile than Kunwu Jiuding Investment. It trades about 0.09 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 418.00 in Yonghui Superstores Co on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Yonghui Superstores Co or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Yonghui Superstores |
| Kunwu Jiuding Investment |
Yonghui Superstores and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and Kunwu Jiuding
The main advantage of trading using opposite Yonghui Superstores and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores 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.| Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Ping An Insurance | Yonghui Superstores vs. China Petroleum Chemical |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |