Correlation Between Sichuan Hebang and Kunwu Jiuding
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Sichuan Hebang 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 Sichuan Hebang with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Kunwu Jiuding.
Diversification Opportunities for Sichuan Hebang and Kunwu Jiuding
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Kunwu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology 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 Sichuan Hebang 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 Sichuan Hebang Biotechnology 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 Sichuan Hebang i.e., Sichuan Hebang and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Kunwu Jiuding
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 1.97 times less risky than Kunwu Jiuding. The stock trades about -0.04 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Kunwu Jiuding Investment on September 1, 2024 and sell it today you would lose (11.00) from holding Kunwu Jiuding Investment or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Kunwu Jiuding Investment |
Sichuan Hebang and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Kunwu Jiuding
The main advantage of trading using opposite Sichuan Hebang and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang 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.| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
| Kunwu Jiuding vs. BeiGene | Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Beijing Roborock Technology | Kunwu Jiuding vs. G bits Network 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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