Correlation Between Guangzhou Jointas and Kuang Chi
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Kuang Chi Technologies, you can compare the effects of market volatilities on Guangzhou Jointas and Kuang Chi 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 Jointas with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Kuang Chi.
Diversification Opportunities for Guangzhou Jointas and Kuang Chi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Kuang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Guangzhou Jointas 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 Jointas Chemical are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Kuang Chi go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Kuang Chi
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Jointas Chemical is 1.05 times less risky than Kuang Chi. The stock trades about -0.17 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,167 in Kuang Chi Technologies on October 17, 2024 and sell it today you would lose (38.00) from holding Kuang Chi Technologies or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Kuang Chi Technologies
Performance |
| Timeline |
| Guangzhou Jointas |
| Kuang Chi Technologies |
Guangzhou Jointas and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Kuang Chi
The main advantage of trading using opposite Guangzhou Jointas and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guangzhou Jointas Chemical | Kuang Chi vs. Soyea Technology Co | Kuang Chi vs. Maxvision Technology Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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