Correlation Between GKHT Medical and Guangzhou Seagull
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By analyzing existing cross correlation between GKHT Medical Technology and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on GKHT Medical and Guangzhou Seagull 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 GKHT Medical with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Guangzhou Seagull.
Diversification Opportunities for GKHT Medical and Guangzhou Seagull
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GKHT and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and GKHT Medical 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 GKHT Medical Technology are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of GKHT Medical i.e., GKHT Medical and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between GKHT Medical and Guangzhou Seagull
Assuming the 90 days trading horizon GKHT Medical Technology is expected to generate 1.49 times more return on investment than Guangzhou Seagull. However, GKHT Medical is 1.49 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.14 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.2 per unit of risk. If you would invest 876.00 in GKHT Medical Technology on August 28, 2024 and sell it today you would earn a total of 284.00 from holding GKHT Medical Technology or generate 32.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| GKHT Medical Technology |
| Guangzhou Seagull Kitchen |
GKHT Medical and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Guangzhou Seagull
The main advantage of trading using opposite GKHT Medical and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Guangzhou Seagull 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 Seagull will offset losses from the drop in Guangzhou Seagull's long position.| GKHT Medical vs. Bank of China | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. PetroChina Co Ltd | GKHT Medical vs. Bank of Communications |
| Guangzhou Seagull vs. Suzhou Xingye Material | Guangzhou Seagull vs. Fujian Longzhou Transportation | Guangzhou Seagull vs. King Strong New Material | Guangzhou Seagull vs. Sinosteel Luonai Materials |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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