Correlation Between Guangzhou KingTeller and Shantui Construction
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Shantui Construction Machinery, you can compare the effects of market volatilities on Guangzhou KingTeller and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Shantui Construction.
Diversification Opportunities for Guangzhou KingTeller and Shantui Construction
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Shantui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Shantui Construction go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Shantui Construction
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.13 times more return on investment than Shantui Construction. However, Guangzhou KingTeller is 1.13 times more volatile than Shantui Construction Machinery. It trades about 0.11 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 per unit of risk. 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 |
Guangzhou KingTeller Technolog vs. Shantui Construction Machinery
Performance |
| Timeline |
| Guangzhou KingTeller |
| Shantui Construction |
Guangzhou KingTeller and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Shantui Construction
The main advantage of trading using opposite Guangzhou KingTeller and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Guangzhou KingTeller vs. Semiconductor Manufacturing Intl | Guangzhou KingTeller vs. Anhui Conch Cement | Guangzhou KingTeller vs. Sungrow Power Supply | Guangzhou KingTeller vs. Shenzhen New Nanshan |
| Shantui Construction vs. Kweichow Moutai Co | Shantui Construction vs. NAURA Technology Group | Shantui Construction vs. Zhejiang Orient Gene | Shantui Construction vs. APT Medical |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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