Correlation Between Kunshan Guoli and Anji Microelectronics
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Anji Microelectronics Tech, you can compare the effects of market volatilities on Kunshan Guoli and Anji Microelectronics 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 Anji Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Anji Microelectronics.
Diversification Opportunities for Kunshan Guoli and Anji Microelectronics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Anji is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Anji Microelectronics Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Microelectronics 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 Anji Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Microelectronics has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Anji Microelectronics go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Anji Microelectronics
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 1.45 times more return on investment than Anji Microelectronics. However, Kunshan Guoli is 1.45 times more volatile than Anji Microelectronics Tech. It trades about -0.09 of its potential returns per unit of risk. Anji Microelectronics Tech is currently generating about -0.14 per unit of risk. If you would invest 4,792 in Kunshan Guoli Electronic on September 14, 2024 and sell it today you would lose (330.00) from holding Kunshan Guoli Electronic or give up 6.89% 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. Anji Microelectronics Tech
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Anji Microelectronics |
Kunshan Guoli and Anji Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Anji Microelectronics
The main advantage of trading using opposite Kunshan Guoli and Anji Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Anji Microelectronics 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 Anji Microelectronics will offset losses from the drop in Anji Microelectronics' 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 |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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