Correlation Between Guangzhou KingTeller and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou KingTeller Technology and Tibet Huayu Mining, you can compare the effects of market volatilities on Guangzhou KingTeller and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Tibet Huayu.
Diversification Opportunities for Guangzhou KingTeller and Tibet Huayu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Tibet is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Tibet Huayu go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Tibet Huayu
Assuming the 90 days trading horizon Guangzhou KingTeller is expected to generate 1.13 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Guangzhou KingTeller Technology is 1.01 times less risky than Tibet Huayu. It trades about 0.07 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Tibet Huayu Mining on September 12, 2024 and sell it today you would earn a total of 607.00 from holding Tibet Huayu Mining or generate 67.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Tibet Huayu Mining
Performance |
| Timeline |
| Guangzhou KingTeller |
| Tibet Huayu Mining |
Guangzhou KingTeller and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Tibet Huayu
The main advantage of trading using opposite Guangzhou KingTeller and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.The idea behind Guangzhou KingTeller Technology and Tibet Huayu Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Rongsheng Petrochemical Co |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |