Correlation Between Guangzhou KingTeller and Hongrun Construction
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hongrun Construction Group, you can compare the effects of market volatilities on Guangzhou KingTeller and Hongrun 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hongrun Construction.
Diversification Opportunities for Guangzhou KingTeller and Hongrun Construction
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hongrun is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hongrun Construction go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hongrun Construction
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.57 times more return on investment than Hongrun Construction. However, Guangzhou KingTeller is 1.57 times more volatile than Hongrun Construction Group. It trades about 0.11 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.06 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Hongrun Construction Group
Performance |
| Timeline |
| Guangzhou KingTeller |
| Hongrun Construction |
Guangzhou KingTeller and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Hongrun Construction
The main advantage of trading using opposite Guangzhou KingTeller and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hongrun 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 Hongrun Construction will offset losses from the drop in Hongrun 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 |
| Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology | Hongrun Construction vs. 516220 |
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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