Correlation Between Shanghai Jinfeng and Guangzhou KingTeller
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Guangzhou KingTeller.
Diversification Opportunities for Shanghai Jinfeng and Guangzhou KingTeller
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Shanghai Jinfeng 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 Shanghai Jinfeng Wine 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Guangzhou KingTeller
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 3.16 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.5 times less risky than Guangzhou KingTeller. It trades about 0.05 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Guangzhou KingTeller Technology on August 31, 2024 and sell it today you would earn a total of 173.00 from holding Guangzhou KingTeller Technology or generate 53.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Guangzhou KingTeller |
Shanghai Jinfeng and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Guangzhou KingTeller
The main advantage of trading using opposite Shanghai Jinfeng and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. Lutian Machinery Co | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. Bank of China | Shanghai Jinfeng vs. Gansu Jiu Steel |
| Guangzhou KingTeller vs. Kweichow Moutai Co | Guangzhou KingTeller vs. NAURA Technology Group | Guangzhou KingTeller vs. APT Medical | Guangzhou KingTeller vs. Contemporary Amperex Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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