Correlation Between Guangzhou KingTeller and Gansu Jiu
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Guangzhou KingTeller and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Gansu Jiu.
Diversification Opportunities for Guangzhou KingTeller and Gansu Jiu
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Gansu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Gansu Jiu go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Gansu Jiu
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Gansu Jiu. In addition to that, Guangzhou KingTeller is 2.43 times more volatile than Gansu Jiu Steel. It trades about -0.21 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.4 per unit of volatility. If you would invest 186.00 in Gansu Jiu Steel on October 10, 2024 and sell it today you would lose (33.00) from holding Gansu Jiu Steel or give up 17.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Gansu Jiu Steel
Performance |
| Timeline |
| Guangzhou KingTeller |
| Gansu Jiu Steel |
Guangzhou KingTeller and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Gansu Jiu
The main advantage of trading using opposite Guangzhou KingTeller and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Guangzhou KingTeller vs. China Aluminum International | Guangzhou KingTeller vs. Tianshan Aluminum Group | Guangzhou KingTeller vs. Inspur Software Co | Guangzhou KingTeller vs. Sino Platinum Metals Co |
| Gansu Jiu vs. Songz Automobile Air | Gansu Jiu vs. GRG Banking Equipment | Gansu Jiu vs. HeNan Splendor Science | Gansu Jiu vs. China Everbright Bank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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