Correlation Between Kunshan Guoli and China State
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By analyzing existing cross correlation between Kunshan Guoli Electronic and China State Construction, you can compare the effects of market volatilities on Kunshan Guoli and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and China State.
Diversification Opportunities for Kunshan Guoli and China State
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and China State go up and down completely randomly.
Pair Corralation between Kunshan Guoli and China State
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the China State. In addition to that, Kunshan Guoli is 2.07 times more volatile than China State Construction. It trades about -0.01 of its total potential returns per unit of risk. China State Construction is currently generating about -0.01 per unit of volatility. If you would invest 602.00 in China State Construction on September 1, 2024 and sell it today you would lose (4.00) from holding China State Construction or give up 0.66% 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. China State Construction
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| China State Construction |
Kunshan Guoli and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and China State
The main advantage of trading using opposite Kunshan Guoli and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Kunshan Guoli vs. Heilongjiang Publishing Media | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Zhejiang Publishing Media | Kunshan Guoli vs. Time Publishing and |
| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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