Correlation Between Kunwu Jiuding and Zhejiang Construction
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Zhejiang Construction Investment, you can compare the effects of market volatilities on Kunwu Jiuding and Zhejiang Construction 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 Kunwu Jiuding with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Zhejiang Construction.
Diversification Opportunities for Kunwu Jiuding and Zhejiang Construction
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunwu and Zhejiang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Kunwu Jiuding 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 Kunwu Jiuding Investment are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Zhejiang Construction
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 0.69 times more return on investment than Zhejiang Construction. However, Kunwu Jiuding Investment is 1.46 times less risky than Zhejiang Construction. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.29 per unit of risk. If you would invest 1,517 in Kunwu Jiuding Investment on September 24, 2024 and sell it today you would earn a total of 11.00 from holding Kunwu Jiuding Investment or generate 0.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kunwu Jiuding Investment vs. Zhejiang Construction Investme
Performance |
Timeline |
Kunwu Jiuding Investment |
Zhejiang Construction |
Kunwu Jiuding and Zhejiang Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kunwu Jiuding and Zhejiang Construction
The main advantage of trading using opposite Kunwu Jiuding and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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