Correlation Between Yuan Longping and Guangzhou KingTeller
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By analyzing existing cross correlation between Yuan Longping High tech and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Yuan Longping 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 Yuan Longping with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Guangzhou KingTeller.
Diversification Opportunities for Yuan Longping and Guangzhou KingTeller
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yuan and Guangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Yuan Longping 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 Yuan Longping High tech 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 Yuan Longping i.e., Yuan Longping and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Yuan Longping and Guangzhou KingTeller
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Yuan Longping High tech is 2.97 times less risky than Guangzhou KingTeller. The stock trades about -0.2 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Guangzhou KingTeller Technology on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Guangzhou KingTeller Technology or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Yuan Longping High |
| Guangzhou KingTeller |
Yuan Longping and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Guangzhou KingTeller
The main advantage of trading using opposite Yuan Longping and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping 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.| Yuan Longping vs. Bus Online Co | Yuan Longping vs. Holitech Technology Co | Yuan Longping vs. Gome Telecom Equipment | Yuan Longping vs. Cultural Investment Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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