Correlation Between Guangzhou KingTeller and Sinofibers Technology
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Guangzhou KingTeller and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Sinofibers Technology.
Diversification Opportunities for Guangzhou KingTeller and Sinofibers Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Sinofibers is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Sinofibers Technology
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.43 times more return on investment than Sinofibers Technology. However, Guangzhou KingTeller is 1.43 times more volatile than Sinofibers Technology Co. It trades about 0.11 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.17 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. Sinofibers Technology Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Sinofibers Technology |
Guangzhou KingTeller and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Sinofibers Technology
The main advantage of trading using opposite Guangzhou KingTeller and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology'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 |
| Sinofibers Technology vs. Success Electronics | Sinofibers Technology vs. Datang HuaYin Electric | Sinofibers Technology vs. Focus Media Information | Sinofibers Technology vs. Epoxy Base Electronic |
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 CEOs Directory module to screen CEOs from public companies around the world.
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