Correlation Between Datang Telecom and Zhuzhou Kibing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Datang Telecom Technology and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Datang Telecom and Zhuzhou Kibing 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 Datang Telecom with a short position of Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang Telecom and Zhuzhou Kibing.
Diversification Opportunities for Datang Telecom and Zhuzhou Kibing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Datang and Zhuzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Datang Telecom Technology and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group and Datang Telecom 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 Datang Telecom Technology are associated (or correlated) with Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Datang Telecom i.e., Datang Telecom and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Datang Telecom and Zhuzhou Kibing
Assuming the 90 days trading horizon Datang Telecom Technology is expected to generate 1.31 times more return on investment than Zhuzhou Kibing. However, Datang Telecom is 1.31 times more volatile than Zhuzhou Kibing Group. It trades about 0.05 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.03 per unit of risk. If you would invest 658.00 in Datang Telecom Technology on August 26, 2024 and sell it today you would earn a total of 394.00 from holding Datang Telecom Technology or generate 59.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang Telecom Technology vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Datang Telecom Technology |
| Zhuzhou Kibing Group |
Datang Telecom and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang Telecom and Zhuzhou Kibing
The main advantage of trading using opposite Datang Telecom and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang Telecom position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Datang Telecom vs. Touchstone International Medical | Datang Telecom vs. Beijing Wandong Medical | Datang Telecom vs. China National Software | Datang Telecom vs. Winner Medical Co |
| Zhuzhou Kibing vs. Hubei Xingfa Chemicals | Zhuzhou Kibing vs. Semiconductor Manufacturing Electronics | Zhuzhou Kibing vs. Epoxy Base Electronic | Zhuzhou Kibing vs. Bomin Electronics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |