Correlation Between Kunshan Guoli and Heilongjiang Publishing
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Kunshan Guoli and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Heilongjiang Publishing.
Diversification Opportunities for Kunshan Guoli and Heilongjiang Publishing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunshan and Heilongjiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Heilongjiang Publishing
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Heilongjiang Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Kunshan Guoli Electronic is 1.16 times less risky than Heilongjiang Publishing. The stock trades about -0.01 of its potential returns per unit of risk. The Heilongjiang Publishing Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,028 in Heilongjiang Publishing Media on September 3, 2024 and sell it today you would earn a total of 652.00 from holding Heilongjiang Publishing Media or generate 63.42% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Heilongjiang Publishing |
Kunshan Guoli and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Heilongjiang Publishing
The main advantage of trading using opposite Kunshan Guoli and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Postal Savings Bank | Kunshan Guoli vs. Bank of Communications |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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