Correlation Between Guangzhou KingTeller and Industrial
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Industrial and Commercial, you can compare the effects of market volatilities on Guangzhou KingTeller and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Industrial.
Diversification Opportunities for Guangzhou KingTeller and Industrial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangzhou and Industrial is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Industrial go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Industrial
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 4.64 times more return on investment than Industrial. However, Guangzhou KingTeller is 4.64 times more volatile than Industrial and Commercial. It trades about 0.19 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.0 per unit of risk. If you would invest 427.00 in Guangzhou KingTeller Technology on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Guangzhou KingTeller Technology or generate 16.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Industrial and Commercial
Performance |
| Timeline |
| Guangzhou KingTeller |
| Industrial and Commercial |
Guangzhou KingTeller and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Industrial
The main advantage of trading using opposite Guangzhou KingTeller and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Guangzhou KingTeller vs. Semiconductor Manufacturing Intl | Guangzhou KingTeller vs. Anhui Conch Cement | Guangzhou KingTeller vs. Sungrow Power Supply | Guangzhou KingTeller vs. Shenzhen New Nanshan |
| Industrial vs. Longjian Road Bridge | Industrial vs. Chongqing Road Bridge | Industrial vs. FSPG Hi Tech Co | Industrial vs. Broadex Technologies 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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