Correlation Between Kunshan Guoli and Qinghaihuading Industrial
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Kunshan Guoli and Qinghaihuading Industrial 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 Kunshan Guoli with a short position of Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Qinghaihuading Industrial.
Diversification Opportunities for Kunshan Guoli and Qinghaihuading Industrial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunshan and Qinghaihuading is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial and Kunshan Guoli 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 Kunshan Guoli Electronic are associated (or correlated) with Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Kunshan Guoli i.e., Kunshan Guoli and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Qinghaihuading Industrial
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 1.04 times more return on investment than Qinghaihuading Industrial. However, Kunshan Guoli is 1.04 times more volatile than Qinghaihuading Industrial Co. It trades about 0.16 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.08 per unit of risk. If you would invest 2,844 in Kunshan Guoli Electronic on September 25, 2024 and sell it today you would earn a total of 1,237 from holding Kunshan Guoli Electronic or generate 43.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kunshan Guoli Electronic vs. Qinghaihuading Industrial Co
Performance |
Timeline |
Kunshan Guoli Electronic |
Qinghaihuading Industrial |
Kunshan Guoli and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kunshan Guoli and Qinghaihuading Industrial
The main advantage of trading using opposite Kunshan Guoli and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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