Correlation Between Kunshan Guoli and Changchun
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Changchun UP Optotech, you can compare the effects of market volatilities on Kunshan Guoli and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Changchun.
Diversification Opportunities for Kunshan Guoli and Changchun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Changchun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Changchun go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Changchun
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Changchun. In addition to that, Kunshan Guoli is 1.01 times more volatile than Changchun UP Optotech. It trades about -0.01 of its total potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.05 per unit of volatility. If you would invest 2,440 in Changchun UP Optotech on September 5, 2024 and sell it today you would earn a total of 2,092 from holding Changchun UP Optotech or generate 85.74% 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. Changchun UP Optotech
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Changchun UP Optotech |
Kunshan Guoli and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Changchun
The main advantage of trading using opposite Kunshan Guoli and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Kunshan Guoli vs. PetroChina Co Ltd | Kunshan Guoli vs. China Mobile Limited | Kunshan Guoli vs. CNOOC Limited | Kunshan Guoli vs. Ping An Insurance |
| Changchun vs. Kweichow Moutai Co | Changchun vs. NAURA Technology Group | Changchun vs. APT Medical | Changchun vs. BYD Co Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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