Correlation Between Anker Innovations and Guangzhou KingTeller
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By analyzing existing cross correlation between Anker Innovations Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Anker Innovations 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 Anker Innovations with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and Guangzhou KingTeller.
Diversification Opportunities for Anker Innovations and Guangzhou KingTeller
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anker and Guangzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Anker Innovations 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 Anker Innovations Technology 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 Anker Innovations i.e., Anker Innovations and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Anker Innovations and Guangzhou KingTeller
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 0.57 times more return on investment than Guangzhou KingTeller. However, Anker Innovations Technology is 1.76 times less risky than Guangzhou KingTeller. It trades about 0.22 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.04 per unit of risk. If you would invest 9,764 in Anker Innovations Technology on November 1, 2024 and sell it today you would earn a total of 1,088 from holding Anker Innovations Technology or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anker Innovations Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Anker Innovations |
| Guangzhou KingTeller |
Anker Innovations and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and Guangzhou KingTeller
The main advantage of trading using opposite Anker Innovations and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations 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.The idea behind Anker Innovations Technology and Guangzhou KingTeller Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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