Correlation Between Longmaster Information and Guangzhou KingTeller
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By analyzing existing cross correlation between Longmaster Information Tech and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Guangzhou KingTeller.
Diversification Opportunities for Longmaster Information and Guangzhou KingTeller
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longmaster and Guangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Longmaster Information and Guangzhou KingTeller
Assuming the 90 days trading horizon Longmaster Information is expected to generate 1.22 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Longmaster Information Tech is 1.14 times less risky than Guangzhou KingTeller. It trades about 0.07 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 341.00 in Guangzhou KingTeller Technology on October 30, 2024 and sell it today you would earn a total of 117.00 from holding Guangzhou KingTeller Technology or generate 34.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Longmaster Information |
| Guangzhou KingTeller |
Longmaster Information and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Guangzhou KingTeller
The main advantage of trading using opposite Longmaster Information and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.| Longmaster Information vs. Beijing Jiaman Dress | Longmaster Information vs. Beingmate Baby Child | Longmaster Information vs. Zhejiang Yongjin Metal | Longmaster Information vs. Yingde Greatchem Chemicals |
| Guangzhou KingTeller vs. Ping An Insurance | Guangzhou KingTeller vs. Anhui Huaren Health | Guangzhou KingTeller vs. Shandong Hongchuang Aluminum | Guangzhou KingTeller vs. Shanghai Yanpu Metal |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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