Correlation Between Zhongtong Guomai and Guangzhou KingTeller
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Guangzhou KingTeller.
Diversification Opportunities for Zhongtong Guomai and Guangzhou KingTeller
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Guangzhou KingTeller
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.95 times more return on investment than Guangzhou KingTeller. However, Zhongtong Guomai Communication is 1.06 times less risky than Guangzhou KingTeller. It trades about 0.09 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.07 per unit of risk. If you would invest 1,048 in Zhongtong Guomai Communication on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Zhongtong Guomai Communication or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Guangzhou KingTeller |
Zhongtong Guomai and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Guangzhou KingTeller
The main advantage of trading using opposite Zhongtong Guomai and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
| Guangzhou KingTeller vs. Semiconductor Manufacturing Intl | Guangzhou KingTeller vs. Anhui Conch Cement | Guangzhou KingTeller vs. Sungrow Power Supply | Guangzhou KingTeller vs. Shenzhen New Nanshan |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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