Correlation Between Industrial and Guangzhou KingTeller
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By analyzing existing cross correlation between Industrial and Commercial and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guangzhou KingTeller.
Diversification Opportunities for Industrial and Guangzhou KingTeller
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Guangzhou is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Industrial and Guangzhou KingTeller
Assuming the 90 days trading horizon Industrial is expected to generate 4.52 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Industrial and Commercial is 3.35 times less risky than Guangzhou KingTeller. It trades about 0.15 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Guangzhou KingTeller Technology on November 5, 2024 and sell it today you would earn a total of 57.00 from holding Guangzhou KingTeller Technology or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Industrial and Commercial |
| Guangzhou KingTeller |
Industrial and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guangzhou KingTeller
The main advantage of trading using opposite Industrial and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. V V Food | Industrial vs. Youyou Foods Co | Industrial vs. Dazhong Transportation Group | Industrial vs. Anji Foodstuff Co |
| Guangzhou KingTeller vs. Fujian Oriental Silver | Guangzhou KingTeller vs. Huaibei Mining Holdings | Guangzhou KingTeller vs. Luolai Home Textile | Guangzhou KingTeller vs. Shenyang Blue Silver |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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