Correlation Between Kontour (Xian) and China Longyuan
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By analyzing existing cross correlation between Kontour Medical Technology and China Longyuan Power, you can compare the effects of market volatilities on Kontour (Xian) and China Longyuan 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 (Xian) with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour (Xian) and China Longyuan.
Diversification Opportunities for Kontour (Xian) and China Longyuan
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kontour and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and Kontour (Xian) 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Kontour (Xian) i.e., Kontour (Xian) and China Longyuan go up and down completely randomly.
Pair Corralation between Kontour (Xian) and China Longyuan
Assuming the 90 days trading horizon Kontour Medical Technology is expected to under-perform the China Longyuan. In addition to that, Kontour (Xian) is 1.17 times more volatile than China Longyuan Power. It trades about -0.13 of its total potential returns per unit of risk. China Longyuan Power is currently generating about 0.44 per unit of volatility. If you would invest 1,495 in China Longyuan Power on November 20, 2024 and sell it today you would earn a total of 172.00 from holding China Longyuan Power or generate 11.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kontour Medical Technology vs. China Longyuan Power
Performance |
Timeline |
Kontour Medical Tech |
China Longyuan Power |
Kontour (Xian) and China Longyuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kontour (Xian) and China Longyuan
The main advantage of trading using opposite Kontour (Xian) and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour (Xian) position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.Kontour (Xian) vs. By health | ||
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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