Correlation Between Guangzhou KingTeller and Guangdong Qunxing
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Guangzhou KingTeller and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Guangdong Qunxing.
Diversification Opportunities for Guangzhou KingTeller and Guangdong Qunxing
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Guangdong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Guangdong Qunxing
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.15 times more return on investment than Guangdong Qunxing. However, Guangzhou KingTeller is 1.15 times more volatile than Guangdong Qunxing Toys. It trades about 0.04 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.03 per unit of risk. If you would invest 479.00 in Guangzhou KingTeller Technology on October 22, 2024 and sell it today you would earn a total of 22.00 from holding Guangzhou KingTeller Technology or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Guangzhou KingTeller |
| Guangdong Qunxing Toys |
Guangzhou KingTeller and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Guangdong Qunxing
The main advantage of trading using opposite Guangzhou KingTeller and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Guangzhou KingTeller vs. APT Medical | Guangzhou KingTeller vs. Citic Offshore Helicopter | Guangzhou KingTeller vs. Shenzhen Glory Medical | Guangzhou KingTeller vs. Integrated Electronic Systems |
| Guangdong Qunxing vs. Weihai Honglin Electronic | Guangdong Qunxing vs. Xizi Clean Energy | Guangdong Qunxing vs. Fuzhou Rockchip Electronics | Guangdong Qunxing vs. Guangzhou Restaurants Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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