Correlation Between ButOne Information and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on ButOne Information 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 ButOne Information with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Guangzhou KingTeller.
Diversification Opportunities for ButOne Information and Guangzhou KingTeller
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ButOne and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and ButOne Information 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 ButOne Information Corp 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 ButOne Information i.e., ButOne Information and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between ButOne Information and Guangzhou KingTeller
Assuming the 90 days trading horizon ButOne Information is expected to generate 2.57 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, ButOne Information Corp is 1.19 times less risky than Guangzhou KingTeller. It trades about 0.02 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Guangzhou KingTeller Technology on September 4, 2024 and sell it today you would earn a total of 183.00 from holding Guangzhou KingTeller Technology or generate 55.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| ButOne Information Corp |
| Guangzhou KingTeller |
ButOne Information and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Guangzhou KingTeller
The main advantage of trading using opposite ButOne Information and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information 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.| ButOne Information vs. Western Mining Co | ButOne Information vs. Chengdu Xingrong Investment | ButOne Information vs. Shaanxi Energy Investment | ButOne Information vs. Jinling Hotel Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |