Correlation Between Guangzhou KingTeller and Pengxin International
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Pengxin International Mining, you can compare the effects of market volatilities on Guangzhou KingTeller and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Pengxin International.
Diversification Opportunities for Guangzhou KingTeller and Pengxin International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Pengxin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Pengxin International go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Pengxin International
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.0 times more return on investment than Pengxin International. However, Guangzhou KingTeller Technology is 1.0 times less risky than Pengxin International. It trades about -0.04 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.1 per unit of risk. If you would invest 510.00 in Guangzhou KingTeller Technology on October 24, 2024 and sell it today you would lose (27.00) from holding Guangzhou KingTeller Technology or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Pengxin International Mining
Performance |
| Timeline |
| Guangzhou KingTeller |
| Pengxin International |
Guangzhou KingTeller and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Pengxin International
The main advantage of trading using opposite Guangzhou KingTeller and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Guangzhou KingTeller vs. Panda Financial Holding | Guangzhou KingTeller vs. Southern PublishingMedia Co | Guangzhou KingTeller vs. Mango Excellent Media | Guangzhou KingTeller vs. Chengdu B ray Media |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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