Correlation Between Guangzhou KingTeller and Hangzhou Gaoxin
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Guangzhou KingTeller and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hangzhou Gaoxin.
Diversification Opportunities for Guangzhou KingTeller and Hangzhou Gaoxin
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hangzhou Gaoxin
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Hangzhou Gaoxin. In addition to that, Guangzhou KingTeller is 1.04 times more volatile than Hangzhou Gaoxin Rubber. It trades about -0.36 of its total potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about -0.21 per unit of volatility. If you would invest 1,125 in Hangzhou Gaoxin Rubber on October 12, 2024 and sell it today you would lose (229.00) from holding Hangzhou Gaoxin Rubber or give up 20.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Guangzhou KingTeller |
| Hangzhou Gaoxin Rubber |
Guangzhou KingTeller and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Hangzhou Gaoxin
The main advantage of trading using opposite Guangzhou KingTeller and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Guangzhou KingTeller vs. Guangzhou Dongfang Hotel | Guangzhou KingTeller vs. TongFu Microelectronics Co | Guangzhou KingTeller vs. Anhui Deli Household | Guangzhou KingTeller vs. BTG Hotels Group |
| Hangzhou Gaoxin vs. Guangzhou KingTeller Technology | Hangzhou Gaoxin vs. Jinhe Biotechnology Co | Hangzhou Gaoxin vs. XiaMen HongXin Electron tech | Hangzhou Gaoxin vs. Kuangda Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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