Correlation Between Guangzhou KingTeller and Nantong Jiangshan
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Nantong Jiangshan Agrochemical, you can compare the effects of market volatilities on Guangzhou KingTeller and Nantong Jiangshan 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 Nantong Jiangshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Nantong Jiangshan.
Diversification Opportunities for Guangzhou KingTeller and Nantong Jiangshan
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and Nantong is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Nantong Jiangshan Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Jiangshan 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 Nantong Jiangshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Jiangshan has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Nantong Jiangshan go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Nantong Jiangshan
Assuming the 90 days trading horizon Guangzhou KingTeller is expected to generate 1.44 times less return on investment than Nantong Jiangshan. In addition to that, Guangzhou KingTeller is 1.73 times more volatile than Nantong Jiangshan Agrochemical. It trades about 0.07 of its total potential returns per unit of risk. Nantong Jiangshan Agrochemical is currently generating about 0.17 per unit of volatility. If you would invest 1,495 in Nantong Jiangshan Agrochemical on January 27, 2025 and sell it today you would earn a total of 134.00 from holding Nantong Jiangshan Agrochemical or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Nantong Jiangshan Agrochemical
Performance |
| Timeline |
| Guangzhou KingTeller |
| Nantong Jiangshan |
Guangzhou KingTeller and Nantong Jiangshan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Nantong Jiangshan
The main advantage of trading using opposite Guangzhou KingTeller and Nantong Jiangshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Nantong Jiangshan 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 Nantong Jiangshan will offset losses from the drop in Nantong Jiangshan's long position.| Guangzhou KingTeller vs. CITIC Metal Co | Guangzhou KingTeller vs. Shandong Huifa Foodstuff | Guangzhou KingTeller vs. Eastroc Beverage Group | Guangzhou KingTeller vs. Jiahe Foods Industry |
| Nantong Jiangshan vs. Guobo Electronics Co | Nantong Jiangshan vs. Jiangxi Lianchuang Opto electronic | Nantong Jiangshan vs. Caihong Display Devices | Nantong Jiangshan vs. Integrated Electronic Systems |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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