Correlation Between Guangzhou KingTeller and Tianshui Huatian
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Tianshui Huatian Technology, you can compare the effects of market volatilities on Guangzhou KingTeller and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Tianshui Huatian.
Diversification Opportunities for Guangzhou KingTeller and Tianshui Huatian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Tianshui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Tianshui Huatian
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.25 times more return on investment than Tianshui Huatian. However, Guangzhou KingTeller is 1.25 times more volatile than Tianshui Huatian Technology. It trades about 0.07 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.16 per unit of risk. If you would invest 474.00 in Guangzhou KingTeller Technology on September 1, 2024 and sell it today you would earn a total of 24.00 from holding Guangzhou KingTeller Technology or generate 5.06% 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. Tianshui Huatian Technology
Performance |
| Timeline |
| Guangzhou KingTeller |
| Tianshui Huatian Tec |
Guangzhou KingTeller and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Tianshui Huatian
The main advantage of trading using opposite Guangzhou KingTeller and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian'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 |
| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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