Correlation Between Guangzhou Tinci and Keeson Technology
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Keeson Technology Corp, you can compare the effects of market volatilities on Guangzhou Tinci and Keeson 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 Tinci with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Keeson Technology.
Diversification Opportunities for Guangzhou Tinci and Keeson Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and Keeson is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and Guangzhou Tinci 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 Tinci Materials are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Keeson Technology go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Keeson Technology
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Keeson Technology. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 2.39 times less risky than Keeson Technology. The stock trades about -0.3 of its potential returns per unit of risk. The Keeson Technology Corp is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,208 in Keeson Technology Corp on October 21, 2024 and sell it today you would lose (139.00) from holding Keeson Technology Corp or give up 11.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Keeson Technology Corp
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Keeson Technology Corp |
Guangzhou Tinci and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Keeson Technology
The main advantage of trading using opposite Guangzhou Tinci and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Keeson 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Guangzhou Tinci vs. Eyebright Medical Technology | Guangzhou Tinci vs. Hengkang Medical Group | Guangzhou Tinci vs. Shanghai Sanyou Medical |
| Keeson Technology vs. Panda Financial Holding | Keeson Technology vs. Lecron Energy Saving | Keeson Technology vs. Unisplendour Corp | Keeson Technology vs. China Everbright Bank |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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