Correlation Between Guangzhou KingTeller and IRay Technology
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and iRay Technology Co, you can compare the effects of market volatilities on Guangzhou KingTeller and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and IRay Technology.
Diversification Opportunities for Guangzhou KingTeller and IRay Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and IRay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and IRay Technology go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and IRay Technology
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.42 times more return on investment than IRay Technology. However, Guangzhou KingTeller is 1.42 times more volatile than iRay Technology Co. It trades about 0.07 of its potential returns per unit of risk. iRay Technology Co is currently generating about 0.0 per unit of risk. If you would invest 474.00 in Guangzhou KingTeller Technology on September 1, 2024 and sell it today you would earn a total of 24.00 from holding Guangzhou KingTeller Technology or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. iRay Technology Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| iRay Technology |
Guangzhou KingTeller and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and IRay Technology
The main advantage of trading using opposite Guangzhou KingTeller and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology'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 |
| IRay Technology vs. Haima Automobile Group | IRay Technology vs. Keeson Technology Corp | IRay Technology vs. Zotye Automobile Co | IRay Technology vs. Guangzhou Automobile Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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