Correlation Between Kontour Medical and Beijing Yanjing
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By analyzing existing cross correlation between Kontour Medical Technology and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Kontour Medical and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and Beijing Yanjing.
Diversification Opportunities for Kontour Medical and Beijing Yanjing
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kontour and Beijing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Kontour Medical i.e., Kontour Medical and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Kontour Medical and Beijing Yanjing
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 1.46 times more return on investment than Beijing Yanjing. However, Kontour Medical is 1.46 times more volatile than Beijing Yanjing Brewery. It trades about 0.14 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.12 per unit of risk. If you would invest 2,283 in Kontour Medical Technology on September 24, 2024 and sell it today you would earn a total of 667.00 from holding Kontour Medical Technology or generate 29.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kontour Medical Technology vs. Beijing Yanjing Brewery
Performance |
Timeline |
Kontour Medical Tech |
Beijing Yanjing Brewery |
Kontour Medical and Beijing Yanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kontour Medical and Beijing Yanjing
The main advantage of trading using opposite Kontour Medical and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.Kontour Medical vs. New China Life | Kontour Medical vs. Ming Yang Smart | Kontour Medical vs. 159681 | Kontour Medical vs. 159005 |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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