Correlation Between HUAQIN TECHNOLOGY and Guangzhou KingTeller
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Guangzhou KingTeller.
Diversification Opportunities for HUAQIN TECHNOLOGY and Guangzhou KingTeller
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUAQIN and Guangzhou is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Guangzhou KingTeller
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.75 times more return on investment than Guangzhou KingTeller. However, HUAQIN TECHNOLOGY LTD is 1.33 times less risky than Guangzhou KingTeller. It trades about 0.19 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.13 per unit of risk. If you would invest 6,738 in HUAQIN TECHNOLOGY LTD on November 4, 2024 and sell it today you would earn a total of 713.00 from holding HUAQIN TECHNOLOGY LTD or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Guangzhou KingTeller |
HUAQIN TECHNOLOGY and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Guangzhou KingTeller
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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