Correlation Between Guangxi Wuzhou and Kingsignal Technology
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Kingsignal Technology Co, you can compare the effects of market volatilities on Guangxi Wuzhou and Kingsignal Technology 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 Guangxi Wuzhou with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Kingsignal Technology.
Diversification Opportunities for Guangxi Wuzhou and Kingsignal Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Kingsignal is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Kingsignal Technology
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.73 times more return on investment than Kingsignal Technology. However, Guangxi Wuzhou Communications is 1.37 times less risky than Kingsignal Technology. It trades about 0.08 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.04 per unit of risk. If you would invest 389.00 in Guangxi Wuzhou Communications on October 30, 2024 and sell it today you would earn a total of 45.00 from holding Guangxi Wuzhou Communications or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Kingsignal Technology Co
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Kingsignal Technology |
Guangxi Wuzhou and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Kingsignal Technology
The main advantage of trading using opposite Guangxi Wuzhou and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. China Construction Bank | Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Bank of China |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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