Correlation Between Kontour Medical and Shanghai Rural
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By analyzing existing cross correlation between Kontour Medical Technology and Shanghai Rural Commercial, you can compare the effects of market volatilities on Kontour Medical and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Shanghai Rural.
Diversification Opportunities for Kontour Medical and Shanghai Rural
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontour and Shanghai is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of Kontour Medical i.e., Kontour Medical and Shanghai Rural go up and down completely randomly.
Pair Corralation between Kontour Medical and Shanghai Rural
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 5.83 times more return on investment than Shanghai Rural. However, Kontour Medical is 5.83 times more volatile than Shanghai Rural Commercial. It trades about 0.1 of its potential returns per unit of risk. Shanghai Rural Commercial is currently generating about -0.15 per unit of risk. If you would invest 2,962 in Kontour Medical Technology on December 4, 2024 and sell it today you would earn a total of 216.00 from holding Kontour Medical Technology or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Shanghai Rural Commercial
Performance |
| Timeline |
| Kontour Medical Tech |
| Shanghai Rural Commercial |
Kontour Medical and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Shanghai Rural
The main advantage of trading using opposite Kontour Medical and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural'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 |
| Shanghai Rural vs. Gansu Huangtai Wine marketing | Shanghai Rural vs. GRIPM Advanced Materials | Shanghai Rural vs. Aurora Optoelectronics Co | Shanghai Rural vs. Jiangxi Lianchuang Opto electronic |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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