Correlation Between Kontour Medical and Xiamen Bank
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By analyzing existing cross correlation between Kontour Medical Technology and Xiamen Bank Co, you can compare the effects of market volatilities on Kontour Medical and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Xiamen Bank.
Diversification Opportunities for Kontour Medical and Xiamen Bank
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kontour and Xiamen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Kontour Medical i.e., Kontour Medical and Xiamen Bank go up and down completely randomly.
Pair Corralation between Kontour Medical and Xiamen Bank
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 1.5 times more return on investment than Xiamen Bank. However, Kontour Medical is 1.5 times more volatile than Xiamen Bank Co. It trades about 0.22 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.2 per unit of risk. If you would invest 2,660 in Kontour Medical Technology on September 5, 2024 and sell it today you would earn a total of 389.00 from holding Kontour Medical Technology or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Xiamen Bank Co
Performance |
| Timeline |
| Kontour Medical Tech |
| Xiamen Bank |
Kontour Medical and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Xiamen Bank
The main advantage of trading using opposite Kontour Medical and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Kontour Medical vs. Kweichow Moutai Co | Kontour Medical vs. Contemporary Amperex Technology | Kontour Medical vs. G bits Network Technology | Kontour Medical vs. Beijing Roborock Technology |
| Xiamen Bank vs. Jiangsu Jinling Sports | Xiamen Bank vs. Everdisplay Optronics Shanghai | Xiamen Bank vs. Chengdu Spaceon Electronics | Xiamen Bank vs. CICC Fund Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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