Correlation Between Guangdong Skychem and Kunwu Jiuding
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By analyzing existing cross correlation between Guangdong Skychem Technology and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Guangdong Skychem and Kunwu Jiuding 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 Guangdong Skychem with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Skychem and Kunwu Jiuding.
Diversification Opportunities for Guangdong Skychem and Kunwu Jiuding
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Kunwu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Skychem Technology and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Guangdong Skychem 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 Guangdong Skychem Technology are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Guangdong Skychem i.e., Guangdong Skychem and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Guangdong Skychem and Kunwu Jiuding
Assuming the 90 days trading horizon Guangdong Skychem Technology is expected to generate 1.27 times more return on investment than Kunwu Jiuding. However, Guangdong Skychem is 1.27 times more volatile than Kunwu Jiuding Investment. It trades about 0.05 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.01 per unit of risk. If you would invest 5,452 in Guangdong Skychem Technology on October 16, 2024 and sell it today you would earn a total of 2,568 from holding Guangdong Skychem Technology or generate 47.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.62% |
| Values | Daily Returns |
Guangdong Skychem Technology vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Guangdong Skychem |
| Kunwu Jiuding Investment |
Guangdong Skychem and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Skychem and Kunwu Jiuding
The main advantage of trading using opposite Guangdong Skychem and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Skychem position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Guangdong Skychem vs. Kunwu Jiuding Investment | Guangdong Skychem vs. Xiandai Investment Co | Guangdong Skychem vs. Hubei Geoway Investment | Guangdong Skychem vs. Henan Shuanghui Investment |
| Kunwu Jiuding vs. Shenzhen Noposion Agrochemicals | Kunwu Jiuding vs. Hubei Xingfa Chemicals | Kunwu Jiuding vs. Shandong Hongchuang Aluminum | Kunwu Jiuding vs. Sino Platinum Metals 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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