Correlation Between Suzhou Industrial and Guangzhou KingTeller
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By analyzing existing cross correlation between Suzhou Industrial Park and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Suzhou Industrial and Guangzhou KingTeller 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 Suzhou Industrial with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Guangzhou KingTeller.
Diversification Opportunities for Suzhou Industrial and Guangzhou KingTeller
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and Guangzhou is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Suzhou Industrial 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 Suzhou Industrial Park are associated (or correlated) with Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Guangzhou KingTeller
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 1.37 times more return on investment than Guangzhou KingTeller. However, Suzhou Industrial is 1.37 times more volatile than Guangzhou KingTeller Technology. It trades about 0.08 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.36 per unit of risk. If you would invest 987.00 in Suzhou Industrial Park on October 12, 2024 and sell it today you would earn a total of 66.00 from holding Suzhou Industrial Park or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Suzhou Industrial Park |
| Guangzhou KingTeller |
Suzhou Industrial and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Guangzhou KingTeller
The main advantage of trading using opposite Suzhou Industrial and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Guangzhou KingTeller 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 KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Suzhou Industrial vs. Dr Peng Telecom | Suzhou Industrial vs. Mengtian Home Group | Suzhou Industrial vs. Markor International Home | Suzhou Industrial vs. Bank of Communications |
| Guangzhou KingTeller vs. Chengdu Kanghua Biological | Guangzhou KingTeller vs. Beijing Wantai Biological | Guangzhou KingTeller vs. Suzhou Novoprotein Scientific | Guangzhou KingTeller vs. Aluminum Corp of |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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