Correlation Between Bohai Leasing and Guangzhou KingTeller
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By analyzing existing cross correlation between Bohai Leasing Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Bohai Leasing and Guangzhou KingTeller 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 Bohai Leasing with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Guangzhou KingTeller.
Diversification Opportunities for Bohai Leasing and Guangzhou KingTeller
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and Guangzhou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Bohai Leasing and Guangzhou KingTeller
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.82 times more return on investment than Guangzhou KingTeller. However, Bohai Leasing Co is 1.22 times less risky than Guangzhou KingTeller. It trades about 0.09 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.05 per unit of risk. If you would invest 194.00 in Bohai Leasing Co on October 18, 2024 and sell it today you would earn a total of 160.00 from holding Bohai Leasing Co or generate 82.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Bohai Leasing |
| Guangzhou KingTeller |
Bohai Leasing and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Guangzhou KingTeller
The main advantage of trading using opposite Bohai Leasing and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Bohai Leasing vs. Dawning Information Industry | Bohai Leasing vs. XiaMen HongXin Electron tech | Bohai Leasing vs. Emdoor Information Co | Bohai Leasing vs. Guangzhou Ruoyuchen Information |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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