Correlation Between Guangzhou KingTeller and Hangzhou Minsheng
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Guangzhou KingTeller and Hangzhou Minsheng 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 Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hangzhou Minsheng.
Diversification Opportunities for Guangzhou KingTeller and Hangzhou Minsheng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hangzhou Minsheng
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.04 times more return on investment than Hangzhou Minsheng. However, Guangzhou KingTeller is 1.04 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.06 per unit of risk. If you would invest 385.00 in Guangzhou KingTeller Technology on September 4, 2024 and sell it today you would earn a total of 128.00 from holding Guangzhou KingTeller Technology or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 83.57% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Guangzhou KingTeller |
| Hangzhou Minsheng |
Guangzhou KingTeller and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Hangzhou Minsheng
The main advantage of trading using opposite Guangzhou KingTeller and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hangzhou Minsheng 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 Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.The idea behind Guangzhou KingTeller Technology and Hangzhou Minsheng Healthcare 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.
| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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