Correlation Between Kunshan Guoli and Xinke Material
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunshan Guoli Electronic and Xinke Material, you can compare the effects of market volatilities on Kunshan Guoli and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Xinke Material.
Diversification Opportunities for Kunshan Guoli and Xinke Material
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Xinke is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Xinke Material go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Xinke Material
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Xinke Material. In addition to that, Kunshan Guoli is 1.56 times more volatile than Xinke Material. It trades about -0.07 of its total potential returns per unit of risk. Xinke Material is currently generating about 0.15 per unit of volatility. If you would invest 217.00 in Xinke Material on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Xinke Material or generate 8.29% 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. Xinke Material
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Xinke Material |
Kunshan Guoli and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Xinke Material
The main advantage of trading using opposite Kunshan Guoli and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material's long position.| Kunshan Guoli vs. Nantong Haixing Electronics | Kunshan Guoli vs. Semiconductor Manufacturing Electronics | Kunshan Guoli vs. Puyang Huicheng Electronic | Kunshan Guoli vs. Northking Information Technology |
| Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |