Correlation Between Kontour Medical and Shaanxi Beiyuan
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By analyzing existing cross correlation between Kontour Medical Technology and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Kontour Medical and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Shaanxi Beiyuan.
Diversification Opportunities for Kontour Medical and Shaanxi Beiyuan
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kontour and Shaanxi is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Kontour Medical i.e., Kontour Medical and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Kontour Medical and Shaanxi Beiyuan
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 2.4 times more return on investment than Shaanxi Beiyuan. However, Kontour Medical is 2.4 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.01 of its potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about -0.03 per unit of risk. If you would invest 3,403 in Kontour Medical Technology on December 4, 2024 and sell it today you would lose (225.00) from holding Kontour Medical Technology or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kontour Medical Technology vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Kontour Medical Tech |
| Shaanxi Beiyuan Chemical |
Kontour Medical and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Shaanxi Beiyuan
The main advantage of trading using opposite Kontour Medical and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| Kontour Medical vs. Unisplendour Corp | Kontour Medical vs. Bank of Communications | Kontour Medical vs. Fujian Newland Computer | Kontour Medical vs. Orinko Advanced Plastics |
| Shaanxi Beiyuan vs. China National Software | Shaanxi Beiyuan vs. Touchstone International Medical | Shaanxi Beiyuan vs. Allmed Medical Products | Shaanxi Beiyuan vs. GuoChuang Software 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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