Correlation Between Guangdong Silvere and Guangzhou KingTeller
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By analyzing existing cross correlation between Guangdong Silvere Sci and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Guangzhou KingTeller.
Diversification Opportunities for Guangdong Silvere and Guangzhou KingTeller
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Guangdong Silvere 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 Guangdong Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Guangzhou KingTeller
Assuming the 90 days trading horizon Guangdong Silvere is expected to generate 1.6 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Guangdong Silvere Sci is 1.03 times less risky than Guangzhou KingTeller. It trades about 0.04 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Guangzhou KingTeller Technology on September 12, 2024 and sell it today you would earn a total of 235.00 from holding Guangzhou KingTeller Technology or generate 54.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Guangzhou KingTeller |
Guangdong Silvere and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Guangzhou KingTeller
The main advantage of trading using opposite Guangdong Silvere and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Rongsheng Petrochemical Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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