Correlation Between Kunshan Guoli and Nantong Haixing
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Nantong Haixing Electronics, you can compare the effects of market volatilities on Kunshan Guoli and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Nantong Haixing.
Diversification Opportunities for Kunshan Guoli and Nantong Haixing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Nantong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Nantong Haixing go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Nantong Haixing
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Nantong Haixing. In addition to that, Kunshan Guoli is 1.66 times more volatile than Nantong Haixing Electronics. It trades about -0.01 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.01 per unit of volatility. If you would invest 1,625 in Nantong Haixing Electronics on August 30, 2024 and sell it today you would lose (265.00) from holding Nantong Haixing Electronics or give up 16.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Nantong Haixing Elec |
Kunshan Guoli and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Nantong Haixing
The main advantage of trading using opposite Kunshan Guoli and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Kunshan Guoli vs. Cultural Investment Holdings | Kunshan Guoli vs. Gome Telecom Equipment | Kunshan Guoli vs. Bus Online Co | Kunshan Guoli vs. Holitech Technology Co |
| Nantong Haixing vs. Hengerda New Materials | Nantong Haixing vs. Super Dragon Engineering Plastics | Nantong Haixing vs. Songz Automobile Air | Nantong Haixing vs. Malion New Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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