Correlation Between Guangzhou Fangbang and Guangzhou KingTeller
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By analyzing existing cross correlation between Guangzhou Fangbang Electronics and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Guangzhou Fangbang 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 Guangzhou Fangbang with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and Guangzhou KingTeller.
Diversification Opportunities for Guangzhou Fangbang and Guangzhou KingTeller
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics 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 Guangzhou Fangbang i.e., Guangzhou Fangbang and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and Guangzhou KingTeller
Assuming the 90 days trading horizon Guangzhou Fangbang is expected to generate 4.68 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Guangzhou Fangbang Electronics is 2.73 times less risky than Guangzhou KingTeller. It trades about 0.02 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 468.00 in Guangzhou KingTeller Technology on September 27, 2024 and sell it today you would earn a total of 3.00 from holding Guangzhou KingTeller Technology or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Fangbang Electronics vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Guangzhou Fangbang |
| Guangzhou KingTeller |
Guangzhou Fangbang and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Fangbang and Guangzhou KingTeller
The main advantage of trading using opposite Guangzhou Fangbang and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang 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.| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
| Guangzhou KingTeller vs. Guangzhou Fangbang Electronics | Guangzhou KingTeller vs. Keeson Technology Corp | Guangzhou KingTeller vs. CSSC Offshore Marine | Guangzhou KingTeller vs. Bomin Electronics 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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