Correlation Between Guangzhou KingTeller and Eyebright Medical
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Eyebright Medical Technology, you can compare the effects of market volatilities on Guangzhou KingTeller and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Eyebright Medical.
Diversification Opportunities for Guangzhou KingTeller and Eyebright Medical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Eyebright is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Eyebright Medical go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Eyebright Medical
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.08 times more return on investment than Eyebright Medical. However, Guangzhou KingTeller is 1.08 times more volatile than Eyebright Medical Technology. It trades about 0.04 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.03 per unit of risk. If you would invest 315.00 in Guangzhou KingTeller Technology on October 27, 2024 and sell it today you would earn a total of 162.00 from holding Guangzhou KingTeller Technology or generate 51.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Eyebright Medical Technology
Performance |
| Timeline |
| Guangzhou KingTeller |
| Eyebright Medical |
Guangzhou KingTeller and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Eyebright Medical
The main advantage of trading using opposite Guangzhou KingTeller and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Guangzhou KingTeller vs. China Sports Industry | Guangzhou KingTeller vs. Anhui Transport Consulting | Guangzhou KingTeller vs. Lander Sports Development | Guangzhou KingTeller vs. Jiangsu Yanghe Brewery |
| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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