Correlation Between Guangzhou KingTeller and Suzhou SLAC
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Suzhou SLAC Precision, you can compare the effects of market volatilities on Guangzhou KingTeller and Suzhou SLAC 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 Suzhou SLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Suzhou SLAC.
Diversification Opportunities for Guangzhou KingTeller and Suzhou SLAC
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Suzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Suzhou SLAC Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou SLAC Precision 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 Suzhou SLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou SLAC Precision has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Suzhou SLAC go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Suzhou SLAC
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 0.87 times more return on investment than Suzhou SLAC. However, Guangzhou KingTeller Technology is 1.15 times less risky than Suzhou SLAC. It trades about 0.07 of its potential returns per unit of risk. Suzhou SLAC Precision is currently generating about 0.05 per unit of risk. If you would invest 428.00 in Guangzhou KingTeller Technology on September 12, 2024 and sell it today you would earn a total of 235.00 from holding Guangzhou KingTeller Technology or generate 54.91% 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. Suzhou SLAC Precision
Performance |
| Timeline |
| Guangzhou KingTeller |
| Suzhou SLAC Precision |
Guangzhou KingTeller and Suzhou SLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Suzhou SLAC
The main advantage of trading using opposite Guangzhou KingTeller and Suzhou SLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Suzhou SLAC 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 Suzhou SLAC will offset losses from the drop in Suzhou SLAC's long position.The idea behind Guangzhou KingTeller Technology and Suzhou SLAC Precision pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Suzhou SLAC vs. Kuangda Technology Group | Suzhou SLAC vs. Citic Guoan Wine | Suzhou SLAC vs. Jiujiang Shanshui Technology | Suzhou SLAC vs. Guangzhou KingTeller Technology |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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