Correlation Between China Three and Guangzhou KingTeller
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By analyzing existing cross correlation between China Three Gorges and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on China Three 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 China Three with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Three and Guangzhou KingTeller.
Diversification Opportunities for China Three and Guangzhou KingTeller
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Guangzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding China Three Gorges and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and China Three 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 China Three Gorges 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 China Three i.e., China Three and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between China Three and Guangzhou KingTeller
Assuming the 90 days trading horizon China Three is expected to generate 50.63 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, China Three Gorges is 1.97 times less risky than Guangzhou KingTeller. It trades about 0.01 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Guangzhou KingTeller Technology on August 30, 2024 and sell it today you would earn a total of 158.00 from holding Guangzhou KingTeller Technology or generate 48.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Three Gorges vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| China Three Gorges |
| Guangzhou KingTeller |
China Three and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Three and Guangzhou KingTeller
The main advantage of trading using opposite China Three and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Three 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.| China Three vs. Wuhan Hvsen Biotechnology | China Three vs. Ningbo Tip Rubber | China Three vs. Advanced Technology Materials | China Three vs. Liaoning Chengda Biotechnology |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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