Correlation Between Kunshan Guoli and Shenzhen Sunlord
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Kunshan Guoli and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Shenzhen Sunlord.
Diversification Opportunities for Kunshan Guoli and Shenzhen Sunlord
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Shenzhen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Shenzhen Sunlord
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 1.45 times more return on investment than Shenzhen Sunlord. However, Kunshan Guoli is 1.45 times more volatile than Shenzhen Sunlord Electronics. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.06 per unit of risk. If you would invest 3,383 in Kunshan Guoli Electronic on September 3, 2024 and sell it today you would earn a total of 877.00 from holding Kunshan Guoli Electronic or generate 25.92% 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. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Shenzhen Sunlord Ele |
Kunshan Guoli and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Shenzhen Sunlord
The main advantage of trading using opposite Kunshan Guoli and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Postal Savings Bank | Kunshan Guoli vs. Bank of Communications |
| Shenzhen Sunlord vs. Semiconductor Manufacturing Electronics | Shenzhen Sunlord vs. Eastroc Beverage Group | Shenzhen Sunlord vs. Chongqing Brewery Co | Shenzhen Sunlord vs. Jinling Hotel Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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