Correlation Between Guangzhou KingTeller and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Guangzhou KingTeller and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Fiberhome Telecommunicatio.
Diversification Opportunities for Guangzhou KingTeller and Fiberhome Telecommunicatio
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Fiberhome is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.31 times more return on investment than Fiberhome Telecommunicatio. However, Guangzhou KingTeller is 1.31 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.05 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.0 per unit of risk. If you would invest 308.00 in Guangzhou KingTeller Technology on August 24, 2024 and sell it today you would earn a total of 172.00 from holding Guangzhou KingTeller Technology or generate 55.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Guangzhou KingTeller |
| Fiberhome Telecommunicatio |
Guangzhou KingTeller and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Fiberhome Telecommunicatio
The main advantage of trading using opposite Guangzhou KingTeller and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Guangzhou KingTeller vs. Chongqing Brewery Co | Guangzhou KingTeller vs. Air China Ltd | Guangzhou KingTeller vs. Eastern Air Logistics | Guangzhou KingTeller vs. Hunan TV Broadcast |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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