Correlation Between Fuyao Glass and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fuyao Glass Industry and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Fuyao Glass 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 Fuyao Glass with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuyao Glass and Guangzhou KingTeller.
Diversification Opportunities for Fuyao Glass and Guangzhou KingTeller
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuyao and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fuyao Glass Industry and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Fuyao Glass 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 Fuyao Glass Industry 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 Fuyao Glass i.e., Fuyao Glass and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Fuyao Glass and Guangzhou KingTeller
Assuming the 90 days trading horizon Fuyao Glass Industry is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Fuyao Glass Industry is 4.36 times less risky than Guangzhou KingTeller. The stock trades about -0.04 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Guangzhou KingTeller Technology on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Guangzhou KingTeller Technology or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuyao Glass Industry vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Fuyao Glass Industry |
| Guangzhou KingTeller |
Fuyao Glass and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuyao Glass and Guangzhou KingTeller
The main advantage of trading using opposite Fuyao Glass and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuyao Glass 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.| Fuyao Glass vs. Guangzhou KingTeller Technology | Fuyao Glass vs. Dongguan Aohai Technology | Fuyao Glass vs. Jiangsu Yueda Investment | Fuyao Glass vs. Tianshui Huatian 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |