Correlation Between Guangzhou KingTeller and Dazhong Transportation
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Dazhong Transportation Group, you can compare the effects of market volatilities on Guangzhou KingTeller and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Dazhong Transportation.
Diversification Opportunities for Guangzhou KingTeller and Dazhong Transportation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Dazhong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Dazhong Transportation
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.87 times more return on investment than Dazhong Transportation. However, Guangzhou KingTeller is 1.87 times more volatile than Dazhong Transportation Group. It trades about 0.12 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.08 per unit of risk. If you would invest 449.00 in Guangzhou KingTeller Technology on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Guangzhou KingTeller Technology or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Dazhong Transportation Group
Performance |
| Timeline |
| Guangzhou KingTeller |
| Dazhong Transportation |
Guangzhou KingTeller and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Dazhong Transportation
The main advantage of trading using opposite Guangzhou KingTeller and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Guangzhou KingTeller vs. Kweichow Moutai Co | Guangzhou KingTeller vs. NAURA Technology Group | Guangzhou KingTeller vs. APT Medical | Guangzhou KingTeller vs. Contemporary Amperex Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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