Correlation Between Guangzhou KingTeller and Kuang Chi
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Kuang Chi Technologies, you can compare the effects of market volatilities on Guangzhou KingTeller and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Kuang Chi.
Diversification Opportunities for Guangzhou KingTeller and Kuang Chi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Kuang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Kuang Chi go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Kuang Chi
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Kuang Chi. In addition to that, Guangzhou KingTeller is 1.36 times more volatile than Kuang Chi Technologies. It trades about -0.09 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.05 per unit of volatility. If you would invest 4,040 in Kuang Chi Technologies on October 18, 2024 and sell it today you would earn a total of 89.00 from holding Kuang Chi Technologies or generate 2.2% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Guangzhou KingTeller |
| Kuang Chi Technologies |
Guangzhou KingTeller and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Kuang Chi
The main advantage of trading using opposite Guangzhou KingTeller and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Guangzhou KingTeller vs. Hainan Mining Co | Guangzhou KingTeller vs. Shenyang Huitian Thermal | Guangzhou KingTeller vs. Bohai Leasing Co | Guangzhou KingTeller vs. Hefei Metalforming Mach |
| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guangzhou Jointas Chemical | Kuang Chi vs. Soyea Technology Co | Kuang Chi vs. Maxvision Technology Corp |
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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