Correlation Between Guangzhou KingTeller and Changzhou Evergreen
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Changzhou Evergreen Technology, you can compare the effects of market volatilities on Guangzhou KingTeller and Changzhou Evergreen 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 Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Changzhou Evergreen.
Diversification Opportunities for Guangzhou KingTeller and Changzhou Evergreen
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Changzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen 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 Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Changzhou Evergreen
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.22 times more return on investment than Changzhou Evergreen. However, Guangzhou KingTeller is 1.22 times more volatile than Changzhou Evergreen Technology. It trades about 0.04 of its potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about -0.03 per unit of risk. If you would invest 403.00 in Guangzhou KingTeller Technology on August 27, 2024 and sell it today you would earn a total of 77.00 from holding Guangzhou KingTeller Technology or generate 19.11% 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. Changzhou Evergreen Technology
Performance |
| Timeline |
| Guangzhou KingTeller |
| Changzhou Evergreen |
Guangzhou KingTeller and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Changzhou Evergreen
The main advantage of trading using opposite Guangzhou KingTeller and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen's long position.| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. China Construction Bank |
| Changzhou Evergreen vs. Cambricon Technologies Corp | Changzhou Evergreen vs. Loongson Technology Corp | Changzhou Evergreen vs. Chongqing Road Bridge | Changzhou Evergreen vs. Shenzhen Fortune Trend |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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