Correlation Between Kunshan Guoli and Chengdu B
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Chengdu B ray Media, you can compare the effects of market volatilities on Kunshan Guoli and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Chengdu B.
Diversification Opportunities for Kunshan Guoli and Chengdu B
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Chengdu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Chengdu B go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Chengdu B
Assuming the 90 days trading horizon Kunshan Guoli is expected to generate 3.12 times less return on investment than Chengdu B. In addition to that, Kunshan Guoli is 1.51 times more volatile than Chengdu B ray Media. It trades about 0.04 of its total potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.17 per unit of volatility. If you would invest 454.00 in Chengdu B ray Media on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Chengdu B ray Media or generate 9.47% 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. Chengdu B ray Media
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Chengdu B ray |
Kunshan Guoli and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Chengdu B
The main advantage of trading using opposite Kunshan Guoli and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Kunshan Guoli vs. HaiXin Foods Co | Kunshan Guoli vs. Guangdong Brandmax Marketing | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Gan Yuan Foods |
| Chengdu B vs. Kunshan Guoli Electronic | Chengdu B vs. Chison Medical Technologies | Chengdu B vs. Xian International Medical | Chengdu B vs. Shenzhen Glory Medical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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