Correlation Between Kontour Medical and New China
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By analyzing existing cross correlation between Kontour Medical Technology and New China Life, you can compare the effects of market volatilities on Kontour Medical and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and New China.
Diversification Opportunities for Kontour Medical and New China
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kontour and New is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Kontour Medical i.e., Kontour Medical and New China go up and down completely randomly.
Pair Corralation between Kontour Medical and New China
Assuming the 90 days trading horizon Kontour Medical is expected to generate 6.96 times less return on investment than New China. In addition to that, Kontour Medical is 1.12 times more volatile than New China Life. It trades about 0.03 of its total potential returns per unit of risk. New China Life is currently generating about 0.23 per unit of volatility. If you would invest 4,577 in New China Life on September 25, 2024 and sell it today you would earn a total of 532.00 from holding New China Life or generate 11.62% 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. New China Life
Performance |
Timeline |
Kontour Medical Tech |
New China Life |
Kontour Medical and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kontour Medical and New China
The main advantage of trading using opposite Kontour Medical and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.Kontour Medical vs. New China Life | Kontour Medical vs. Ming Yang Smart | Kontour Medical vs. 159681 | Kontour Medical vs. 159005 |
New China vs. Kweichow Moutai Co | New China vs. Shenzhen Mindray Bio Medical | New China vs. Jiangsu Pacific Quartz | New China vs. G bits Network 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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