Correlation Between Guangzhou KingTeller and Wangneng Environment
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Wangneng Environment Co, you can compare the effects of market volatilities on Guangzhou KingTeller and Wangneng Environment 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 Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Wangneng Environment.
Diversification Opportunities for Guangzhou KingTeller and Wangneng Environment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Wangneng is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment 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 Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Wangneng Environment go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Wangneng Environment
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 2.89 times more return on investment than Wangneng Environment. However, Guangzhou KingTeller is 2.89 times more volatile than Wangneng Environment Co. It trades about 0.09 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about -0.1 per unit of risk. If you would invest 440.00 in Guangzhou KingTeller Technology on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Guangzhou KingTeller Technology or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Wangneng Environment Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Wangneng Environment |
Guangzhou KingTeller and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Wangneng Environment
The main advantage of trading using opposite Guangzhou KingTeller and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment'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 |
| Wangneng Environment vs. Guangzhou KingTeller Technology | Wangneng Environment vs. CITIC Metal Co | Wangneng Environment vs. Niutech Environment Technology | Wangneng Environment vs. Changchun UP Optotech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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