Correlation Between Kunshan Guoli and Luenmei Quantum
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Luenmei Quantum Co, you can compare the effects of market volatilities on Kunshan Guoli and Luenmei Quantum 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 Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Luenmei Quantum.
Diversification Opportunities for Kunshan Guoli and Luenmei Quantum
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and Luenmei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum 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 Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Luenmei Quantum
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Luenmei Quantum. In addition to that, Kunshan Guoli is 2.7 times more volatile than Luenmei Quantum Co. It trades about -0.17 of its total potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.01 per unit of volatility. If you would invest 615.00 in Luenmei Quantum Co on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Luenmei Quantum Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Luenmei Quantum Co
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Luenmei Quantum |
Kunshan Guoli and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Luenmei Quantum
The main advantage of trading using opposite Kunshan Guoli and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's 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 |
| Luenmei Quantum vs. Zhongtong Guomai Communication | Luenmei Quantum vs. Hefei Metalforming Mach | Luenmei Quantum vs. Wintao Communications Co | Luenmei Quantum vs. ChengDu Hi Tech Development |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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