Correlation Between Guangzhou KDT and Juewei Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou KDT Machinery and Juewei Food Co, you can compare the effects of market volatilities on Guangzhou KDT and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KDT and Juewei Food.
Diversification Opportunities for Guangzhou KDT and Juewei Food
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Juewei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KDT Machinery and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Guangzhou KDT i.e., Guangzhou KDT and Juewei Food go up and down completely randomly.
Pair Corralation between Guangzhou KDT and Juewei Food
Assuming the 90 days trading horizon Guangzhou KDT Machinery is expected to generate 0.78 times more return on investment than Juewei Food. However, Guangzhou KDT Machinery is 1.29 times less risky than Juewei Food. It trades about 0.0 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.08 per unit of risk. If you would invest 1,730 in Guangzhou KDT Machinery on October 16, 2024 and sell it today you would lose (131.00) from holding Guangzhou KDT Machinery or give up 7.57% 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. Juewei Food Co
Performance |
| Timeline |
| Guangzhou KDT Machinery |
| Juewei Food |
Guangzhou KDT and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KDT and Juewei Food
The main advantage of trading using opposite Guangzhou KDT and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KDT position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Guangzhou KDT vs. Biwin Storage Technology | Guangzhou KDT vs. PetroChina Co Ltd | Guangzhou KDT vs. Industrial and Commercial | Guangzhou KDT vs. China Construction Bank |
| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |