Correlation Between Kun Peng and Preferred Commerce
Can any of the company-specific risk be diversified away by investing in both Kun Peng and Preferred Commerce at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kun Peng and Preferred Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kun Peng International and Preferred Commerce, you can compare the effects of market volatilities on Kun Peng and Preferred Commerce 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 Kun Peng with a short position of Preferred Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kun Peng and Preferred Commerce.
Diversification Opportunities for Kun Peng and Preferred Commerce
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kun and Preferred is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kun Peng International and Preferred Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Preferred Commerce and Kun Peng 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 Kun Peng International are associated (or correlated) with Preferred Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Preferred Commerce has no effect on the direction of Kun Peng i.e., Kun Peng and Preferred Commerce go up and down completely randomly.
Pair Corralation between Kun Peng and Preferred Commerce
Given the investment horizon of 90 days Kun Peng is expected to generate 1.76 times less return on investment than Preferred Commerce. In addition to that, Kun Peng is 1.07 times more volatile than Preferred Commerce. It trades about 0.05 of its total potential returns per unit of risk. Preferred Commerce is currently generating about 0.09 per unit of volatility. If you would invest 5.10 in Preferred Commerce on August 13, 2025 and sell it today you would earn a total of 10.90 from holding Preferred Commerce or generate 213.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Kun Peng International vs. Preferred Commerce
Performance |
| Timeline |
| Kun Peng International |
| Preferred Commerce |
Kun Peng and Preferred Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kun Peng and Preferred Commerce
The main advantage of trading using opposite Kun Peng and Preferred Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kun Peng position performs unexpectedly, Preferred Commerce 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 Preferred Commerce will offset losses from the drop in Preferred Commerce's long position.| Kun Peng vs. Preferred Commerce | Kun Peng vs. BioForce Nanosciences Holdings | Kun Peng vs. Swiss Water Decaffeinated | Kun Peng vs. Zhong Yuan Bio Technology |
| Preferred Commerce vs. Elamex SA de | Preferred Commerce vs. DAVIDsTEA | Preferred Commerce vs. BioForce Nanosciences Holdings | Preferred Commerce vs. China Tontine Wines |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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