Correlation Between Kunshan Guoli and Lingyuan Iron
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Lingyuan Iron Steel, you can compare the effects of market volatilities on Kunshan Guoli and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Lingyuan Iron.
Diversification Opportunities for Kunshan Guoli and Lingyuan Iron
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and Lingyuan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Lingyuan Iron go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Lingyuan Iron
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Lingyuan Iron. In addition to that, Kunshan Guoli is 1.63 times more volatile than Lingyuan Iron Steel. It trades about -0.01 of its total potential returns per unit of risk. Lingyuan Iron Steel is currently generating about 0.0 per unit of volatility. If you would invest 228.00 in Lingyuan Iron Steel on September 3, 2024 and sell it today you would lose (27.00) from holding Lingyuan Iron Steel or give up 11.84% 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. Lingyuan Iron Steel
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Lingyuan Iron Steel |
Kunshan Guoli and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Lingyuan Iron
The main advantage of trading using opposite Kunshan Guoli and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron'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 |
| Lingyuan Iron vs. Zijin Mining Group | Lingyuan Iron vs. Wanhua Chemical Group | Lingyuan Iron vs. Baoshan Iron Steel | Lingyuan Iron vs. Rongsheng Petrochemical 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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