Correlation Between Guangzhou KingTeller and China Everbright
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and China Everbright Bank, you can compare the effects of market volatilities on Guangzhou KingTeller and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and China Everbright.
Diversification Opportunities for Guangzhou KingTeller and China Everbright
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and China Everbright go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and China Everbright
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 2.92 times more return on investment than China Everbright. However, Guangzhou KingTeller is 2.92 times more volatile than China Everbright Bank. It trades about 0.06 of its potential returns per unit of risk. China Everbright Bank is currently generating about 0.08 per unit of risk. If you would invest 418.00 in Guangzhou KingTeller Technology on September 14, 2024 and sell it today you would earn a total of 208.00 from holding Guangzhou KingTeller Technology or generate 49.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. China Everbright Bank
Performance |
| Timeline |
| Guangzhou KingTeller |
| China Everbright Bank |
Guangzhou KingTeller and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and China Everbright
The main advantage of trading using opposite Guangzhou KingTeller and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. Agricultural Bank of |
| China Everbright vs. CIMC Vehicles Co | China Everbright vs. Zhejiang Qianjiang Motorcycle | China Everbright vs. Shenzhen Bioeasy Biotechnology | China Everbright vs. Ningbo Fangzheng Automobile |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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