Correlation Between Guangzhou KingTeller and TongFu Microelectronics
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and TongFu Microelectronics Co, you can compare the effects of market volatilities on Guangzhou KingTeller and TongFu Microelectronics 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 TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and TongFu Microelectronics.
Diversification Opportunities for Guangzhou KingTeller and TongFu Microelectronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and TongFu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics 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 TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and TongFu Microelectronics
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the TongFu Microelectronics. In addition to that, Guangzhou KingTeller is 1.41 times more volatile than TongFu Microelectronics Co. It trades about -0.24 of its total potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.05 per unit of volatility. If you would invest 2,915 in TongFu Microelectronics Co on October 14, 2024 and sell it today you would lose (120.00) from holding TongFu Microelectronics Co or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| TongFu Microelectronics |
Guangzhou KingTeller and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and TongFu Microelectronics
The main advantage of trading using opposite Guangzhou KingTeller and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Guangzhou KingTeller vs. ZYF Lopsking Aluminum | Guangzhou KingTeller vs. Telling Telecommunication Holding | Guangzhou KingTeller vs. Quectel Wireless Solutions | Guangzhou KingTeller vs. Aluminum Corp of |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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