Correlation Between Guangzhou KingTeller and Guangdong Skychem
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Guangdong Skychem Technology, you can compare the effects of market volatilities on Guangzhou KingTeller and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Guangdong Skychem.
Diversification Opportunities for Guangzhou KingTeller and Guangdong Skychem
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Guangdong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Guangdong Skychem
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Guangdong Skychem. In addition to that, Guangzhou KingTeller is 1.14 times more volatile than Guangdong Skychem Technology. It trades about -0.09 of its total potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.06 per unit of volatility. If you would invest 8,476 in Guangdong Skychem Technology on October 18, 2024 and sell it today you would lose (575.00) from holding Guangdong Skychem Technology or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Guangzhou KingTeller |
| Guangdong Skychem |
Guangzhou KingTeller and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Guangdong Skychem
The main advantage of trading using opposite Guangzhou KingTeller and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Guangzhou KingTeller vs. Hainan Mining Co | Guangzhou KingTeller vs. Shenyang Huitian Thermal | Guangzhou KingTeller vs. Bohai Leasing Co | Guangzhou KingTeller vs. Hefei Metalforming Mach |
| Guangdong Skychem vs. Beijing Yanjing Brewery | Guangdong Skychem vs. Nanjing Putian Telecommunications | Guangdong Skychem vs. Ping An Insurance | Guangdong Skychem vs. TongFu Microelectronics 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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