Correlation Between TianJin 712 and Guangzhou KingTeller
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By analyzing existing cross correlation between TianJin 712 Communication and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on TianJin 712 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 TianJin 712 with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Guangzhou KingTeller.
Diversification Opportunities for TianJin 712 and Guangzhou KingTeller
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TianJin and Guangzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 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 TianJin 712 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 TianJin 712 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 TianJin 712 i.e., TianJin 712 and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between TianJin 712 and Guangzhou KingTeller
Assuming the 90 days trading horizon TianJin 712 Communication is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, TianJin 712 Communication is 1.53 times less risky than Guangzhou KingTeller. The stock trades about -0.33 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Guangzhou KingTeller Technology on November 1, 2024 and sell it today you would earn a total of 8.00 from holding Guangzhou KingTeller Technology or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| TianJin 712 Communication |
| Guangzhou KingTeller |
TianJin 712 and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Guangzhou KingTeller
The main advantage of trading using opposite TianJin 712 and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 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.| TianJin 712 vs. Fujian Boss Software | TianJin 712 vs. Jiamei Food Packaging | TianJin 712 vs. Sanquan Food Co | TianJin 712 vs. JuneYao Dairy Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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