Correlation Between Kunwu Jiuding and New Hope
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and New Hope Dairy, you can compare the effects of market volatilities on Kunwu Jiuding and New Hope 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 New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and New Hope.
Diversification Opportunities for Kunwu Jiuding and New Hope
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and New is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and New Hope go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and New Hope
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.05 times less return on investment than New Hope. In addition to that, Kunwu Jiuding is 1.32 times more volatile than New Hope Dairy. It trades about 0.02 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.03 per unit of volatility. If you would invest 1,262 in New Hope Dairy on September 24, 2024 and sell it today you would earn a total of 238.00 from holding New Hope Dairy or generate 18.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kunwu Jiuding Investment vs. New Hope Dairy
Performance |
Timeline |
Kunwu Jiuding Investment |
New Hope Dairy |
Kunwu Jiuding and New Hope Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kunwu Jiuding and New Hope
The main advantage of trading using opposite Kunwu Jiuding and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, New Hope 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 Hope will offset losses from the drop in New Hope's long position.Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding vs. Loctek Ergonomic Technology |
New Hope vs. China Railway Construction | New Hope vs. Henan Shuanghui Investment | New Hope vs. Kunwu Jiuding Investment | New Hope vs. Shenzhen Centralcon Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |