Correlation Between Guangzhou KDT and Guangzhou Jointas
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou KDT Machinery and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Guangzhou KDT and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KDT and Guangzhou Jointas.
Diversification Opportunities for Guangzhou KDT and Guangzhou Jointas
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KDT Machinery and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Guangzhou KDT i.e., Guangzhou KDT and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Guangzhou KDT and Guangzhou Jointas
Assuming the 90 days trading horizon Guangzhou KDT Machinery is expected to generate 0.49 times more return on investment than Guangzhou Jointas. However, Guangzhou KDT Machinery is 2.04 times less risky than Guangzhou Jointas. It trades about -0.47 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.32 per unit of risk. If you would invest 1,886 in Guangzhou KDT Machinery on October 12, 2024 and sell it today you would lose (265.00) from holding Guangzhou KDT Machinery or give up 14.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KDT Machinery vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Guangzhou KDT Machinery |
| Guangzhou Jointas |
Guangzhou KDT and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KDT and Guangzhou Jointas
The main advantage of trading using opposite Guangzhou KDT and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KDT position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' 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 |
| Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. Songz Automobile Air | Guangzhou Jointas vs. Zoy Home Furnishing | Guangzhou Jointas vs. Ningbo Fangzheng Automobile |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets |