Correlation Between Weichai Heavy and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weichai Heavy Machinery and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Weichai Heavy 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 Weichai Heavy with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Guangzhou KingTeller.
Diversification Opportunities for Weichai Heavy and Guangzhou KingTeller
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weichai and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Weichai Heavy 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 Weichai Heavy Machinery 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 Weichai Heavy i.e., Weichai Heavy and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Weichai Heavy and Guangzhou KingTeller
Assuming the 90 days trading horizon Weichai Heavy is expected to generate 1.06 times less return on investment than Guangzhou KingTeller. In addition to that, Weichai Heavy is 1.06 times more volatile than Guangzhou KingTeller Technology. It trades about 0.1 of its total potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.11 per unit of volatility. If you would invest 325.00 in Guangzhou KingTeller Technology on September 1, 2024 and sell it today you would earn a total of 173.00 from holding Guangzhou KingTeller Technology or generate 53.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Guangzhou KingTeller |
Weichai Heavy and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Guangzhou KingTeller
The main advantage of trading using opposite Weichai Heavy and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy 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.| Weichai Heavy vs. Cultural Investment Holdings | Weichai Heavy vs. Gome Telecom Equipment | Weichai Heavy vs. Bus Online Co | Weichai Heavy vs. Holitech Technology Co |
| Guangzhou KingTeller vs. Semiconductor Manufacturing Intl | Guangzhou KingTeller vs. Anhui Conch Cement | Guangzhou KingTeller vs. Sungrow Power Supply | Guangzhou KingTeller vs. Shenzhen New Nanshan |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |