Correlation Between Zhejiang Orient and Kunwu Jiuding
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By analyzing existing cross correlation between Zhejiang Orient Gene and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Zhejiang Orient and Kunwu Jiuding 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 Zhejiang Orient with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Kunwu Jiuding.
Diversification Opportunities for Zhejiang Orient and Kunwu Jiuding
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Kunwu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Zhejiang Orient 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 Zhejiang Orient Gene are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Kunwu Jiuding
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Orient Gene is 1.32 times less risky than Kunwu Jiuding. The stock trades about -0.01 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,443 in Kunwu Jiuding Investment on September 14, 2024 and sell it today you would earn a total of 210.00 from holding Kunwu Jiuding Investment or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Kunwu Jiuding Investment |
Zhejiang Orient and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Kunwu Jiuding
The main advantage of trading using opposite Zhejiang Orient and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Zhejiang Orient vs. Jiangsu GDK Biotechnology | Zhejiang Orient vs. Jinhe Biotechnology Co | Zhejiang Orient vs. Youngy Health Co | Zhejiang Orient vs. Sichuan Hebang Biotechnology |
| Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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