Correlation Between Kontour Medical and Jizhong Energy
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By analyzing existing cross correlation between Kontour Medical Technology and Jizhong Energy Resources, you can compare the effects of market volatilities on Kontour Medical and Jizhong Energy 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 Kontour Medical with a short position of Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Jizhong Energy.
Diversification Opportunities for Kontour Medical and Jizhong Energy
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kontour and Jizhong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources and Kontour Medical 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 Kontour Medical Technology are associated (or correlated) with Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Kontour Medical i.e., Kontour Medical and Jizhong Energy go up and down completely randomly.
Pair Corralation between Kontour Medical and Jizhong Energy
Assuming the 90 days trading horizon Kontour Medical is expected to generate 1.39 times less return on investment than Jizhong Energy. In addition to that, Kontour Medical is 1.35 times more volatile than Jizhong Energy Resources. It trades about 0.13 of its total potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.25 per unit of volatility. If you would invest 615.00 in Jizhong Energy Resources on September 13, 2024 and sell it today you would earn a total of 63.00 from holding Jizhong Energy Resources or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Jizhong Energy Resources
Performance |
| Timeline |
| Kontour Medical Tech |
| Jizhong Energy Resources |
Kontour Medical and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Jizhong Energy
The main advantage of trading using opposite Kontour Medical and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Kontour Medical vs. Industrial and Commercial | Kontour Medical vs. Kweichow Moutai Co | Kontour Medical vs. Agricultural Bank of | Kontour Medical vs. China Mobile Limited |
| Jizhong Energy vs. Nanxing Furniture Machinery | Jizhong Energy vs. Shuhua Sports Co | Jizhong Energy vs. Hunan Mendale Hometextile | Jizhong Energy vs. Southern PublishingMedia Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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