Correlation Between Kontour Medical and Everdisplay Optronics
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By analyzing existing cross correlation between Kontour Medical Technology and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Kontour Medical and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Everdisplay Optronics.
Diversification Opportunities for Kontour Medical and Everdisplay Optronics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kontour and Everdisplay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Kontour Medical i.e., Kontour Medical and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Kontour Medical and Everdisplay Optronics
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 1.32 times more return on investment than Everdisplay Optronics. However, Kontour Medical is 1.32 times more volatile than Everdisplay Optronics Shanghai. It trades about 0.22 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about -0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Kontour Medical Tech |
| Everdisplay Optronics |
Kontour Medical and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and Everdisplay Optronics
The main advantage of trading using opposite Kontour Medical and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' 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 |
| Everdisplay Optronics vs. PetroChina Co Ltd | Everdisplay Optronics vs. China Mobile Limited | Everdisplay Optronics vs. CNOOC Limited | Everdisplay Optronics vs. Ping An Insurance |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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