Correlation Between Guangzhou KingTeller and Hua Xia
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hua Xia Bank, you can compare the effects of market volatilities on Guangzhou KingTeller and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hua Xia.
Diversification Opportunities for Guangzhou KingTeller and Hua Xia
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Hua is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hua Xia go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hua Xia
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 2.37 times more return on investment than Hua Xia. However, Guangzhou KingTeller is 2.37 times more volatile than Hua Xia Bank. It trades about 0.06 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.05 per unit of risk. If you would invest 334.00 in Guangzhou KingTeller Technology on October 12, 2024 and sell it today you would earn a total of 116.00 from holding Guangzhou KingTeller Technology or generate 34.73% 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. Hua Xia Bank
Performance |
| Timeline |
| Guangzhou KingTeller |
| Hua Xia Bank |
Guangzhou KingTeller and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Hua Xia
The main advantage of trading using opposite Guangzhou KingTeller and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Bohai Leasing Co | Hua Xia vs. Easyhome New Retail | Hua Xia vs. Ningbo Construction Co | Hua Xia vs. Sinomach General Machinery |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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