Correlation Between Guangzhou KingTeller and Chongqing Brewery
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Chongqing Brewery Co, you can compare the effects of market volatilities on Guangzhou KingTeller and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Chongqing Brewery.
Diversification Opportunities for Guangzhou KingTeller and Chongqing Brewery
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Chongqing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Chongqing Brewery
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 2.18 times more return on investment than Chongqing Brewery. However, Guangzhou KingTeller is 2.18 times more volatile than Chongqing Brewery Co. It trades about 0.09 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.01 per unit of risk. If you would invest 440.00 in Guangzhou KingTeller Technology on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Guangzhou KingTeller Technology or generate 7.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Chongqing Brewery Co
Performance |
Timeline |
Guangzhou KingTeller |
Chongqing Brewery |
Guangzhou KingTeller and Chongqing Brewery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou KingTeller and Chongqing Brewery
The main advantage of trading using opposite Guangzhou KingTeller and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. China Construction Bank |
Chongqing Brewery vs. China Petroleum Chemical | Chongqing Brewery vs. PetroChina Co Ltd | Chongqing Brewery vs. China State Construction | Chongqing Brewery vs. China Railway 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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