Correlation Between Guangzhou KDT and Beijing Mainstreets
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By analyzing existing cross correlation between Guangzhou KDT Machinery and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Guangzhou KDT and Beijing Mainstreets 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 KDT with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KDT and Beijing Mainstreets.
Diversification Opportunities for Guangzhou KDT and Beijing Mainstreets
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KDT Machinery and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Guangzhou KDT 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 KDT Machinery are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Guangzhou KDT i.e., Guangzhou KDT and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Guangzhou KDT and Beijing Mainstreets
Assuming the 90 days trading horizon Guangzhou KDT Machinery is expected to generate 0.57 times more return on investment than Beijing Mainstreets. However, Guangzhou KDT Machinery is 1.75 times less risky than Beijing Mainstreets. It trades about 0.03 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.02 per unit of risk. If you would invest 1,313 in Guangzhou KDT Machinery on October 11, 2024 and sell it today you would earn a total of 308.00 from holding Guangzhou KDT Machinery or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KDT Machinery vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Guangzhou KDT Machinery |
| Beijing Mainstreets |
Guangzhou KDT and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KDT and Beijing Mainstreets
The main advantage of trading using opposite Guangzhou KDT and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KDT position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Guangzhou KDT vs. Elite Color Environmental | Guangzhou KDT vs. Central Plains Environment | Guangzhou KDT vs. Changjiang Jinggong Steel | Guangzhou KDT vs. Hangzhou Guotai Environmental |
| Beijing Mainstreets vs. Huasi Agricultural Development | Beijing Mainstreets vs. Tianshui Huatian Technology | Beijing Mainstreets vs. Qijing Machinery | Beijing Mainstreets vs. Guangzhou KDT Machinery |
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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