Correlation Between Kunshan Guoli and Success Electronics
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Success Electronics, you can compare the effects of market volatilities on Kunshan Guoli and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Success Electronics.
Diversification Opportunities for Kunshan Guoli and Success Electronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and Success is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Success Electronics go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Success Electronics
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 1.26 times more return on investment than Success Electronics. However, Kunshan Guoli is 1.26 times more volatile than Success Electronics. It trades about 0.01 of its potential returns per unit of risk. Success Electronics is currently generating about -0.03 per unit of risk. If you would invest 4,810 in Kunshan Guoli Electronic on September 12, 2024 and sell it today you would lose (381.00) from holding Kunshan Guoli Electronic or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Success Electronics
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Success Electronics |
Kunshan Guoli and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Success Electronics
The main advantage of trading using opposite Kunshan Guoli and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Kunshan Guoli vs. Gansu Jiu Steel | Kunshan Guoli vs. Shandong Mining Machinery | Kunshan Guoli vs. Aba Chemicals Corp | Kunshan Guoli vs. BlueFocus Communication Group |
| Success Electronics vs. Gansu Jiu Steel | Success Electronics vs. Shandong Mining Machinery | Success Electronics vs. Aba Chemicals Corp | Success Electronics vs. BlueFocus Communication Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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