Correlation Between Guangzhou KingTeller and Ciwen Media
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Ciwen Media Co, you can compare the effects of market volatilities on Guangzhou KingTeller and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Ciwen Media.
Diversification Opportunities for Guangzhou KingTeller and Ciwen Media
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Ciwen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Ciwen Media go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Ciwen Media
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.16 times more return on investment than Ciwen Media. However, Guangzhou KingTeller is 1.16 times more volatile than Ciwen Media Co. It trades about 0.21 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.22 per unit of risk. If you would invest 319.00 in Guangzhou KingTeller Technology on September 4, 2024 and sell it today you would earn a total of 194.00 from holding Guangzhou KingTeller Technology or generate 60.82% 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. Ciwen Media Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Ciwen Media |
Guangzhou KingTeller and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Ciwen Media
The main advantage of trading using opposite Guangzhou KingTeller and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.The idea behind Guangzhou KingTeller Technology and Ciwen Media Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Ciwen Media vs. Hoshine Silicon Ind | Ciwen Media vs. Iat Automobile Technology | Ciwen Media vs. China Construction Bank | Ciwen Media vs. Guangzhou KingTeller 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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