Correlation Between Guangzhou KingTeller and Chengdu Spaceon
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Guangzhou KingTeller and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Chengdu Spaceon.
Diversification Opportunities for Guangzhou KingTeller and Chengdu Spaceon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Chengdu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Chengdu Spaceon
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.56 times more return on investment than Chengdu Spaceon. However, Guangzhou KingTeller is 1.56 times more volatile than Chengdu Spaceon Electronics. It trades about 0.11 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.09 per unit of risk. If you would invest 440.00 in Guangzhou KingTeller Technology on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Guangzhou KingTeller Technology or generate 9.77% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Guangzhou KingTeller |
| Chengdu Spaceon Elec |
Guangzhou KingTeller and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Chengdu Spaceon
The main advantage of trading using opposite Guangzhou KingTeller and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Guangzhou KingTeller vs. Cambricon Technologies Corp | Guangzhou KingTeller vs. Loongson Technology Corp | Guangzhou KingTeller vs. Shenzhen Fortune Trend | Guangzhou KingTeller vs. Chongqing Road Bridge |
| Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Bank of China | Chengdu Spaceon vs. China Construction Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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