Correlation Between Kunshan Guoli and Xian International
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Xian International Medical, you can compare the effects of market volatilities on Kunshan Guoli and Xian International 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 Kunshan Guoli with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Xian International.
Diversification Opportunities for Kunshan Guoli and Xian International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Xian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Kunshan Guoli 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 Kunshan Guoli Electronic are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Xian International go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Xian International
Assuming the 90 days trading horizon Kunshan Guoli is expected to generate 5.64 times less return on investment than Xian International. In addition to that, Kunshan Guoli is 1.01 times more volatile than Xian International Medical. It trades about 0.04 of its total potential returns per unit of risk. Xian International Medical is currently generating about 0.2 per unit of volatility. If you would invest 528.00 in Xian International Medical on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Xian International Medical or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Xian International Medical
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Xian International |
Kunshan Guoli and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Xian International
The main advantage of trading using opposite Kunshan Guoli and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Kunshan Guoli vs. HaiXin Foods Co | Kunshan Guoli vs. Guangdong Brandmax Marketing | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Gan Yuan Foods |
| Xian International vs. Dalian Zeus Entertainment | Xian International vs. Shenzhen Kexin Communication | Xian International vs. Threes Company Media | Xian International vs. Eastern Communications Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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