Correlation Between Kontour Medical and Western Mining
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By analyzing existing cross correlation between Kontour Medical Technology and Western Mining Co, you can compare the effects of market volatilities on Kontour Medical and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Western Mining.
Diversification Opportunities for Kontour Medical and Western Mining
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontour and Western is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Kontour Medical i.e., Kontour Medical and Western Mining go up and down completely randomly.
Pair Corralation between Kontour Medical and Western Mining
Assuming the 90 days trading horizon Kontour Medical is expected to generate 57.13 times less return on investment than Western Mining. In addition to that, Kontour Medical is 1.37 times more volatile than Western Mining Co. It trades about 0.0 of its total potential returns per unit of risk. Western Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 1,017 in Western Mining Co on October 31, 2024 and sell it today you would earn a total of 726.00 from holding Western Mining Co or generate 71.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Western Mining Co
Performance |
| Timeline |
| Kontour Medical Tech |
| Western Mining |
Kontour Medical and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Western Mining
The main advantage of trading using opposite Kontour Medical and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Kontour Medical vs. Unisplendour Corp | Kontour Medical vs. Suzhou Mingzhi Technology | Kontour Medical vs. China World Trade | Kontour Medical vs. Beijing Yanjing Brewery |
| Western Mining vs. Lander Sports Development | Western Mining vs. Dymatic Chemicals | Western Mining vs. Hubeiyichang Transportation Group | Western Mining vs. HeBei Jinniu Chemical |
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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