Correlation Between Guangzhou KingTeller and Ningbo GQY
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Ningbo GQY Video, you can compare the effects of market volatilities on Guangzhou KingTeller and Ningbo GQY 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 Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Ningbo GQY.
Diversification Opportunities for Guangzhou KingTeller and Ningbo GQY
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Ningbo GQY go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Ningbo GQY
Assuming the 90 days trading horizon Guangzhou KingTeller is expected to generate 1.05 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Guangzhou KingTeller Technology is 1.19 times less risky than Ningbo GQY. It trades about 0.06 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 586.00 in Ningbo GQY Video on September 14, 2024 and sell it today you would earn a total of 247.00 from holding Ningbo GQY Video or generate 42.15% 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. Ningbo GQY Video
Performance |
| Timeline |
| Guangzhou KingTeller |
| Ningbo GQY Video |
Guangzhou KingTeller and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Ningbo GQY
The main advantage of trading using opposite Guangzhou KingTeller and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Ningbo GQY 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 Ningbo GQY will offset losses from the drop in Ningbo GQY's long position.| Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. Agricultural Bank of |
| Ningbo GQY vs. Do Fluoride Chemicals Co | Ningbo GQY vs. Guangzhou KingTeller Technology | Ningbo GQY vs. Jinyu Bio Technology Co | Ningbo GQY vs. Linewell Software Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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