Correlation Between Guangzhou KingTeller and Jonjee Hi
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Guangzhou KingTeller and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Jonjee Hi.
Diversification Opportunities for Guangzhou KingTeller and Jonjee Hi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Jonjee is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Jonjee Hi go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Jonjee Hi
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Jonjee Hi. In addition to that, Guangzhou KingTeller is 3.16 times more volatile than Jonjee Hi tech Industrial. It trades about -0.36 of its total potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.42 per unit of volatility. If you would invest 2,455 in Jonjee Hi tech Industrial on October 12, 2024 and sell it today you would lose (316.00) from holding Jonjee Hi tech Industrial or give up 12.87% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Guangzhou KingTeller |
| Jonjee Hi tech |
Guangzhou KingTeller and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Jonjee Hi
The main advantage of trading using opposite Guangzhou KingTeller and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Guangzhou KingTeller vs. Chengdu Kanghua Biological | Guangzhou KingTeller vs. Beijing Wantai Biological | Guangzhou KingTeller vs. Suzhou Novoprotein Scientific | Guangzhou KingTeller vs. Aluminum Corp of |
| Jonjee Hi vs. Shaanxi Meineng Clean | Jonjee Hi vs. Digiwin Software Co | Jonjee Hi vs. Guangzhou KingTeller Technology | Jonjee Hi vs. Eyebright Medical Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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