Correlation Between Guilin Seamild and Kuang Chi
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By analyzing existing cross correlation between Guilin Seamild Foods and Kuang Chi Technologies, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Kuang Chi.
Diversification Opportunities for Guilin Seamild and Kuang Chi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guilin and Kuang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Kuang Chi go up and down completely randomly.
Pair Corralation between Guilin Seamild and Kuang Chi
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.84 times more return on investment than Kuang Chi. However, Guilin Seamild Foods is 1.19 times less risky than Kuang Chi. It trades about 0.4 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.13 per unit of risk. If you would invest 1,364 in Guilin Seamild Foods on September 14, 2024 and sell it today you would earn a total of 397.00 from holding Guilin Seamild Foods or generate 29.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Kuang Chi Technologies
Performance |
| Timeline |
| Guilin Seamild Foods |
| Kuang Chi Technologies |
Guilin Seamild and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Kuang Chi
The main advantage of trading using opposite Guilin Seamild and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Kangyue Technology Co | Guilin Seamild vs. Shenzhen Hifuture Electric |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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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