Correlation Between Kunwu Jiuding and Harbin Hatou
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Harbin Hatou Investment, you can compare the effects of market volatilities on Kunwu Jiuding and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Harbin Hatou.
Diversification Opportunities for Kunwu Jiuding and Harbin Hatou
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Harbin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Kunwu Jiuding i.e., Kunwu Jiuding and Harbin Hatou go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Harbin Hatou
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 10.25 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Kunwu Jiuding Investment is 1.61 times less risky than Harbin Hatou. It trades about 0.03 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Harbin Hatou Investment on September 24, 2024 and sell it today you would earn a total of 76.00 from holding Harbin Hatou Investment or generate 11.73% 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. Harbin Hatou Investment
Performance |
Timeline |
Kunwu Jiuding Investment |
Harbin Hatou Investment |
Kunwu Jiuding and Harbin Hatou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kunwu Jiuding and Harbin Hatou
The main advantage of trading using opposite Kunwu Jiuding and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding vs. Loctek Ergonomic Technology |
Harbin Hatou vs. Kweichow Moutai Co | Harbin Hatou vs. Contemporary Amperex Technology | Harbin Hatou vs. G bits Network Technology | Harbin Hatou vs. BYD Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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