Correlation Between Guangzhou KingTeller and Songcheng Performance
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Songcheng Performance Develop, you can compare the effects of market volatilities on Guangzhou KingTeller and Songcheng Performance 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 Songcheng Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Songcheng Performance.
Diversification Opportunities for Guangzhou KingTeller and Songcheng Performance
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Songcheng is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Songcheng Performance Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songcheng Performance 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 Songcheng Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songcheng Performance has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Songcheng Performance go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Songcheng Performance
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.13 times more return on investment than Songcheng Performance. However, Guangzhou KingTeller is 1.13 times more volatile than Songcheng Performance Develop. It trades about 0.12 of its potential returns per unit of risk. Songcheng Performance Develop is currently generating about 0.01 per unit of risk. If you would invest 313.00 in Guangzhou KingTeller Technology on September 3, 2024 and sell it today you would earn a total of 185.00 from holding Guangzhou KingTeller Technology or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Songcheng Performance Develop
Performance |
| Timeline |
| Guangzhou KingTeller |
| Songcheng Performance |
Guangzhou KingTeller and Songcheng Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Songcheng Performance
The main advantage of trading using opposite Guangzhou KingTeller and Songcheng Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Songcheng Performance 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 Songcheng Performance will offset losses from the drop in Songcheng Performance's long position.| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Postal Savings Bank | Guangzhou KingTeller vs. Bank of Communications |
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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