Correlation Between Shenzhen Glory and Guangzhou KingTeller
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By analyzing existing cross correlation between Shenzhen Glory Medical and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Shenzhen Glory 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 Shenzhen Glory with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Guangzhou KingTeller.
Diversification Opportunities for Shenzhen Glory and Guangzhou KingTeller
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Shenzhen Glory 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 Shenzhen Glory Medical 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 Shenzhen Glory i.e., Shenzhen Glory and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Guangzhou KingTeller
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Glory Medical is 1.92 times less risky than Guangzhou KingTeller. The stock trades about -0.17 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Guangzhou KingTeller Technology on October 22, 2024 and sell it today you would lose (22.00) from holding Guangzhou KingTeller Technology or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Guangzhou KingTeller |
Shenzhen Glory and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Guangzhou KingTeller
The main advantage of trading using opposite Shenzhen Glory and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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.| Shenzhen Glory vs. Suzhou Xingye Material | Shenzhen Glory vs. Iat Automobile Technology | Shenzhen Glory vs. Orinko Advanced Plastics | Shenzhen Glory vs. Malion New Materials |
| Guangzhou KingTeller vs. APT Medical | Guangzhou KingTeller vs. Citic Offshore Helicopter | Guangzhou KingTeller vs. Shenzhen Glory Medical | Guangzhou KingTeller vs. Integrated Electronic Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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