Correlation Between Guangzhou KingTeller and Xiangyang Automobile
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Guangzhou KingTeller and Xiangyang Automobile 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 Guangzhou KingTeller with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Xiangyang Automobile.
Diversification Opportunities for Guangzhou KingTeller and Xiangyang Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Xiangyang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Guangzhou KingTeller 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 Guangzhou KingTeller Technology are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Xiangyang Automobile
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou KingTeller Technology is 1.15 times less risky than Xiangyang Automobile. The stock trades about -0.31 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Xiangyang Automobile Bearing on October 16, 2024 and sell it today you would lose (124.00) from holding Xiangyang Automobile Bearing or give up 17.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Guangzhou KingTeller |
| Xiangyang Automobile |
Guangzhou KingTeller and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Xiangyang Automobile
The main advantage of trading using opposite Guangzhou KingTeller and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Guangzhou KingTeller vs. HUAQIN TECHNOLOGY LTD | Guangzhou KingTeller vs. Tianjin Hi Tech Development | Guangzhou KingTeller vs. CGN Nuclear Technology | Guangzhou KingTeller vs. Eyebright Medical Technology |
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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