Correlation Between Longmaster Information and Guangzhou KDT
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By analyzing existing cross correlation between Longmaster Information Tech and Guangzhou KDT Machinery, you can compare the effects of market volatilities on Longmaster Information and Guangzhou KDT 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 KDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Guangzhou KDT.
Diversification Opportunities for Longmaster Information and Guangzhou KDT
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Guangzhou KDT Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KDT Machinery 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 KDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KDT Machinery has no effect on the direction of Longmaster Information i.e., Longmaster Information and Guangzhou KDT go up and down completely randomly.
Pair Corralation between Longmaster Information and Guangzhou KDT
Assuming the 90 days trading horizon Longmaster Information Tech is expected to under-perform the Guangzhou KDT. In addition to that, Longmaster Information is 2.21 times more volatile than Guangzhou KDT Machinery. It trades about -0.07 of its total potential returns per unit of risk. Guangzhou KDT Machinery is currently generating about -0.07 per unit of volatility. If you would invest 1,820 in Guangzhou KDT Machinery on October 30, 2024 and sell it today you would lose (88.00) from holding Guangzhou KDT Machinery or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Guangzhou KDT Machinery
Performance |
| Timeline |
| Longmaster Information |
| Guangzhou KDT Machinery |
Longmaster Information and Guangzhou KDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Guangzhou KDT
The main advantage of trading using opposite Longmaster Information and Guangzhou KDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Guangzhou KDT 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 KDT will offset losses from the drop in Guangzhou KDT'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 KDT vs. Suzhou Oriental Semiconductor | Guangzhou KDT vs. Ingenic Semiconductor | Guangzhou KDT vs. Shanghai V Test Semiconductor | Guangzhou KDT vs. Cansino Biologics |
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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