Correlation Between Jilin Chemical and Guangzhou KingTeller
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By analyzing existing cross correlation between Jilin Chemical Fibre and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Jilin Chemical 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 Jilin Chemical with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Guangzhou KingTeller.
Diversification Opportunities for Jilin Chemical and Guangzhou KingTeller
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Jilin Chemical 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 Jilin Chemical Fibre 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 Jilin Chemical i.e., Jilin Chemical and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Jilin Chemical and Guangzhou KingTeller
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.41 times less risky than Guangzhou KingTeller. The stock trades about -0.01 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Guangzhou KingTeller Technology on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Guangzhou KingTeller Technology or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Guangzhou KingTeller |
Jilin Chemical and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Guangzhou KingTeller
The main advantage of trading using opposite Jilin Chemical and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical 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.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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