Correlation Between Ningbo Thermal and Guangzhou KingTeller
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By analyzing existing cross correlation between Ningbo Thermal Power and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Ningbo Thermal 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 Ningbo Thermal with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Guangzhou KingTeller.
Diversification Opportunities for Ningbo Thermal and Guangzhou KingTeller
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Guangzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Ningbo Thermal 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 Ningbo Thermal Power 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 Ningbo Thermal i.e., Ningbo Thermal and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Guangzhou KingTeller
Assuming the 90 days trading horizon Ningbo Thermal Power is expected to generate 1.1 times more return on investment than Guangzhou KingTeller. However, Ningbo Thermal is 1.1 times more volatile than Guangzhou KingTeller Technology. It trades about -0.17 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.28 per unit of risk. If you would invest 464.00 in Ningbo Thermal Power on October 15, 2024 and sell it today you would lose (82.00) from holding Ningbo Thermal Power or give up 17.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Ningbo Thermal Power |
| Guangzhou KingTeller |
Ningbo Thermal and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Guangzhou KingTeller
The main advantage of trading using opposite Ningbo Thermal and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal 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.| Ningbo Thermal vs. Beijing Mainstreets Investment | Ningbo Thermal vs. State Grid InformationCommunication | Ningbo Thermal vs. FSPG Hi Tech Co | Ningbo Thermal vs. Shanghai Shibei Hi Tech |
| Guangzhou KingTeller vs. ZYF Lopsking Aluminum | Guangzhou KingTeller vs. Telling Telecommunication Holding | Guangzhou KingTeller vs. Quectel Wireless Solutions | Guangzhou KingTeller vs. Aluminum Corp of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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