Correlation Between Kontour Medical and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Kontour Medical Technology and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Kontour Medical and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Guangzhou Ruoyuchen.
Diversification Opportunities for Kontour Medical and Guangzhou Ruoyuchen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kontour and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Kontour Medical i.e., Kontour Medical and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Kontour Medical and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Kontour Medical is expected to generate 5.12 times less return on investment than Guangzhou Ruoyuchen. But when comparing it to its historical volatility, Kontour Medical Technology is 1.78 times less risky than Guangzhou Ruoyuchen. It trades about 0.15 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 1,491 in Guangzhou Ruoyuchen Information on September 1, 2024 and sell it today you would earn a total of 806.00 from holding Guangzhou Ruoyuchen Information or generate 54.06% 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. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Kontour Medical Tech |
| Guangzhou Ruoyuchen |
Kontour Medical and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Guangzhou Ruoyuchen
The main advantage of trading using opposite Kontour Medical and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Kontour Medical vs. Nanjing Putian Telecommunications | Kontour Medical vs. Shenzhen Hifuture Electric | Kontour Medical vs. Tianjin Realty Development | Kontour Medical vs. Shenyang Huitian Thermal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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