Correlation Between Tianshui Huatian and Guangzhou KingTeller
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By analyzing existing cross correlation between Tianshui Huatian Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Tianshui Huatian and Guangzhou KingTeller 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 Tianshui Huatian with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Guangzhou KingTeller.
Diversification Opportunities for Tianshui Huatian and Guangzhou KingTeller
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Guangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Tianshui Huatian 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 Tianshui Huatian Technology are associated (or correlated) with Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Guangzhou KingTeller
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Tianshui Huatian Technology is 1.25 times less risky than Guangzhou KingTeller. The stock trades about -0.16 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Guangzhou KingTeller |
Tianshui Huatian and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Guangzhou KingTeller
The main advantage of trading using opposite Tianshui Huatian and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
| Guangzhou KingTeller vs. Semiconductor Manufacturing Intl | Guangzhou KingTeller vs. Anhui Conch Cement | Guangzhou KingTeller vs. Sungrow Power Supply | Guangzhou KingTeller vs. Shenzhen New Nanshan |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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