Correlation Between Guangzhou Haige and Kingsignal Technology
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By analyzing existing cross correlation between Guangzhou Haige Communications and Kingsignal Technology Co, you can compare the effects of market volatilities on Guangzhou Haige and Kingsignal 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 Haige with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Kingsignal Technology.
Diversification Opportunities for Guangzhou Haige and Kingsignal Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Kingsignal is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Guangzhou Haige 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 Haige Communications are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Kingsignal Technology
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.98 times more return on investment than Kingsignal Technology. However, Guangzhou Haige Communications is 1.02 times less risky than Kingsignal Technology. It trades about 0.17 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about -0.01 per unit of risk. If you would invest 1,131 in Guangzhou Haige Communications on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Guangzhou Haige Communications or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Kingsignal Technology Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Kingsignal Technology |
Guangzhou Haige and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Kingsignal Technology
The main advantage of trading using opposite Guangzhou Haige and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Kingsignal 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| Kingsignal Technology vs. Sinofibers Technology Co | Kingsignal Technology vs. Tianshui Huatian Technology | Kingsignal Technology vs. Hainan Mining Co | Kingsignal Technology vs. Linewell Software 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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