Correlation Between 159005 and Kunwu Jiuding
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By analyzing existing cross correlation between 159005 and Kunwu Jiuding Investment, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Kunwu Jiuding.
Diversification Opportunities for 159005 and Kunwu Jiuding
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 159005 and Kunwu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between 159005 and Kunwu Jiuding
Assuming the 90 days trading horizon 159005 is expected to generate 23.25 times less return on investment than Kunwu Jiuding. But when comparing it to its historical volatility, 159005 is 134.43 times less risky than Kunwu Jiuding. It trades about 0.22 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,463 in Kunwu Jiuding Investment on September 24, 2024 and sell it today you would earn a total of 65.00 from holding Kunwu Jiuding Investment or generate 4.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
159005 vs. Kunwu Jiuding Investment
Performance |
Timeline |
159005 |
Kunwu Jiuding Investment |
159005 and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159005 and Kunwu Jiuding
The main advantage of trading using opposite 159005 and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Kunwu Jiuding Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding vs. Loctek Ergonomic Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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