Correlation Between Lingyuan Iron and Guangzhou KingTeller
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By analyzing existing cross correlation between Lingyuan Iron Steel and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Lingyuan Iron 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 Lingyuan Iron with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lingyuan Iron and Guangzhou KingTeller.
Diversification Opportunities for Lingyuan Iron and Guangzhou KingTeller
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lingyuan and Guangzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lingyuan Iron Steel and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Lingyuan Iron 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 Lingyuan Iron Steel 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 Lingyuan Iron i.e., Lingyuan Iron and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Lingyuan Iron and Guangzhou KingTeller
Assuming the 90 days trading horizon Lingyuan Iron Steel is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Lingyuan Iron Steel is 2.06 times less risky than Guangzhou KingTeller. The stock trades about -0.08 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Guangzhou KingTeller Technology on October 31, 2024 and sell it today you would lose (7.00) from holding Guangzhou KingTeller Technology or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lingyuan Iron Steel vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Lingyuan Iron Steel |
| Guangzhou KingTeller |
Lingyuan Iron and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lingyuan Iron and Guangzhou KingTeller
The main advantage of trading using opposite Lingyuan Iron and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lingyuan Iron 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.| Lingyuan Iron vs. Thinkingdom Media Group | Lingyuan Iron vs. Beijing Kingsoft Office | Lingyuan Iron vs. Harbin Hatou Investment | Lingyuan Iron vs. China Publishing Media |
| Guangzhou KingTeller vs. Jiangsu Financial Leasing | Guangzhou KingTeller vs. Sichuan Hebang Biotechnology | Guangzhou KingTeller vs. Nuode Investment Co | Guangzhou KingTeller vs. Hubei Geoway 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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