Correlation Between Guangzhou KingTeller and Hualan Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hualan Group Co, you can compare the effects of market volatilities on Guangzhou KingTeller and Hualan Group 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 Hualan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hualan Group.
Diversification Opportunities for Guangzhou KingTeller and Hualan Group
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Hualan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hualan Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hualan Group 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 Hualan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hualan Group has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hualan Group go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hualan Group
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Hualan Group. In addition to that, Guangzhou KingTeller is 1.39 times more volatile than Hualan Group Co. It trades about -0.04 of its total potential returns per unit of risk. Hualan Group Co is currently generating about 0.12 per unit of volatility. If you would invest 1,499 in Hualan Group Co on October 24, 2024 and sell it today you would earn a total of 111.00 from holding Hualan Group Co or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Hualan Group Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Hualan Group |
Guangzhou KingTeller and Hualan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Hualan Group
The main advantage of trading using opposite Guangzhou KingTeller and Hualan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hualan Group 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 Hualan Group will offset losses from the drop in Hualan Group's long position.| Guangzhou KingTeller vs. Panda Financial Holding | Guangzhou KingTeller vs. Southern PublishingMedia Co | Guangzhou KingTeller vs. Mango Excellent Media | Guangzhou KingTeller vs. Chengdu B ray Media |
| Hualan Group vs. Silkroad Visual Technology | Hualan Group vs. Guangzhou KingTeller Technology | Hualan Group vs. Xinjiang Beixin RoadBridge | Hualan Group vs. Tianshui Huatian 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |