Correlation Between Hongrun Construction and Guangzhou KingTeller
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By analyzing existing cross correlation between Hongrun Construction Group and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Guangzhou KingTeller.
Diversification Opportunities for Hongrun Construction and Guangzhou KingTeller
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Guangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Hongrun Construction and Guangzhou KingTeller
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 2.66 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Hongrun Construction Group is 1.57 times less risky than Guangzhou KingTeller. It trades about 0.06 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 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Hongrun Construction |
| Guangzhou KingTeller |
Hongrun Construction and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Guangzhou KingTeller
The main advantage of trading using opposite Hongrun Construction and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology | Hongrun Construction vs. 516220 |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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