Correlation Between Guangzhou KingTeller and Dongguan Chitwing
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Guangzhou KingTeller and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Dongguan Chitwing.
Diversification Opportunities for Guangzhou KingTeller and Dongguan Chitwing
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Dongguan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Dongguan Chitwing
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 0.95 times more return on investment than Dongguan Chitwing. However, Guangzhou KingTeller Technology is 1.05 times less risky than Dongguan Chitwing. It trades about 0.07 of its potential returns per unit of risk. Dongguan Chitwing Technology is currently generating about -0.05 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. Dongguan Chitwing Technology
Performance |
| Timeline |
| Guangzhou KingTeller |
| Dongguan Chitwing |
Guangzhou KingTeller and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Dongguan Chitwing
The main advantage of trading using opposite Guangzhou KingTeller and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing'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 |
| Dongguan Chitwing vs. China Petroleum Chemical | Dongguan Chitwing vs. PetroChina Co Ltd | Dongguan Chitwing vs. China State Construction | Dongguan Chitwing vs. China Railway 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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