Correlation Between Leaguer Shenzhen and Kunshan Guoli
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Leaguer Shenzhen and Kunshan Guoli 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 Leaguer Shenzhen with a short position of Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Kunshan Guoli.
Diversification Opportunities for Leaguer Shenzhen and Kunshan Guoli
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaguer and Kunshan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic and Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics are associated (or correlated) with Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Leaguer Shenzhen i.e., Leaguer Shenzhen and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Kunshan Guoli
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to generate 0.94 times more return on investment than Kunshan Guoli. However, Leaguer Shenzhen MicroElectronics is 1.07 times less risky than Kunshan Guoli. It trades about 0.01 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.0 per unit of risk. If you would invest 3,368 in Leaguer Shenzhen MicroElectronics on November 28, 2024 and sell it today you would lose (483.00) from holding Leaguer Shenzhen MicroElectronics or give up 14.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Kunshan Guoli Electronic |
Leaguer Shenzhen and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Kunshan Guoli
The main advantage of trading using opposite Leaguer Shenzhen and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Leaguer Shenzhen vs. Shanghai Yanpu Metal | Leaguer Shenzhen vs. Shenzhen Urban Transport | Leaguer Shenzhen vs. Hainan Haiqi Transportation | Leaguer Shenzhen vs. Guangdong Jingyi Metal |
| Kunshan Guoli vs. Ping An Insurance | Kunshan Guoli vs. Xiamen Bank Co | Kunshan Guoli vs. Hainan Haiqi Transportation | Kunshan Guoli vs. Hunan TV Broadcast |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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