Correlation Between Chengdu B-ray and Guangzhou KingTeller
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By analyzing existing cross correlation between Chengdu B ray Media and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Chengdu B-ray 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 Chengdu B-ray with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Guangzhou KingTeller.
Diversification Opportunities for Chengdu B-ray and Guangzhou KingTeller
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Guangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Chengdu B-ray 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 Chengdu B ray Media 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 Chengdu B-ray i.e., Chengdu B-ray and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Guangzhou KingTeller
Assuming the 90 days trading horizon Chengdu B-ray is expected to generate 3.62 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Chengdu B ray Media is 1.67 times less risky than Guangzhou KingTeller. It trades about 0.06 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Guangzhou KingTeller Technology on November 4, 2024 and sell it today you would earn a total of 38.00 from holding Guangzhou KingTeller Technology or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Chengdu B ray |
| Guangzhou KingTeller |
Chengdu B-ray and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Guangzhou KingTeller
The main advantage of trading using opposite Chengdu B-ray and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray 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.| Chengdu B-ray vs. Guangdong Sunwill Precising | Chengdu B-ray vs. Shengda Mining Co | Chengdu B-ray vs. Jilin OLED Material | Chengdu B-ray vs. Malion New Materials |
| Guangzhou KingTeller vs. Zhongfu Information | Guangzhou KingTeller vs. Beingmate Baby Child | Guangzhou KingTeller vs. Wonders Information | Guangzhou KingTeller vs. Shenzhen Zqgame |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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