Correlation Between Changzhou Evergreen and Guangzhou KingTeller
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By analyzing existing cross correlation between Changzhou Evergreen Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Changzhou Evergreen 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 Changzhou Evergreen with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Evergreen and Guangzhou KingTeller.
Diversification Opportunities for Changzhou Evergreen and Guangzhou KingTeller
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changzhou and Guangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Evergreen Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Changzhou Evergreen 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 Changzhou Evergreen Technology 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 Changzhou Evergreen i.e., Changzhou Evergreen and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Changzhou Evergreen and Guangzhou KingTeller
Assuming the 90 days trading horizon Changzhou Evergreen is expected to generate 1.06 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Changzhou Evergreen Technology is 1.41 times less risky than Guangzhou KingTeller. It trades about 0.15 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Guangzhou KingTeller Technology on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Guangzhou KingTeller Technology or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changzhou Evergreen Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Changzhou Evergreen |
| Guangzhou KingTeller |
Changzhou Evergreen and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changzhou Evergreen and Guangzhou KingTeller
The main advantage of trading using opposite Changzhou Evergreen and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Evergreen 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.| Changzhou Evergreen vs. Industrial and Commercial | Changzhou Evergreen vs. Agricultural Bank of | Changzhou Evergreen vs. China Construction Bank | Changzhou Evergreen vs. Bank of China |
| Guangzhou KingTeller vs. Cambricon Technologies Corp | Guangzhou KingTeller vs. Loongson Technology Corp | Guangzhou KingTeller vs. Shenzhen Fortune Trend | Guangzhou KingTeller vs. Chongqing Road Bridge |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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