Correlation Between Guangzhou KingTeller and Western Metal
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Western Metal Materials, you can compare the effects of market volatilities on Guangzhou KingTeller and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Western Metal.
Diversification Opportunities for Guangzhou KingTeller and Western Metal
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Western is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Western Metal go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Western Metal
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Western Metal. In addition to that, Guangzhou KingTeller is 1.28 times more volatile than Western Metal Materials. It trades about -0.04 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.06 per unit of volatility. If you would invest 1,751 in Western Metal Materials on October 24, 2024 and sell it today you would earn a total of 59.00 from holding Western Metal Materials or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Western Metal Materials
Performance |
| Timeline |
| Guangzhou KingTeller |
| Western Metal Materials |
Guangzhou KingTeller and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Western Metal
The main advantage of trading using opposite Guangzhou KingTeller and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Guangzhou KingTeller vs. Panda Financial Holding | Guangzhou KingTeller vs. Southern PublishingMedia Co | Guangzhou KingTeller vs. Mango Excellent Media | Guangzhou KingTeller vs. Chengdu B ray Media |
| Western Metal vs. Tianjin Ruixin Technology | Western Metal vs. Hubei Forbon Technology | Western Metal vs. Kingclean Electric Co | Western Metal vs. Road Environment 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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