Correlation Between Kunshan Guoli and Cultural Investment
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Cultural Investment Holdings, you can compare the effects of market volatilities on Kunshan Guoli and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Cultural Investment.
Diversification Opportunities for Kunshan Guoli and Cultural Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunshan and Cultural is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Cultural Investment go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Cultural Investment
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Kunshan Guoli Electronic is 1.04 times less risky than Cultural Investment. The stock trades about -0.09 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Cultural Investment Holdings
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Cultural Investment |
Kunshan Guoli and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Cultural Investment
The main advantage of trading using opposite Kunshan Guoli and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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