Correlation Between Cabio Biotech and Guangzhou KingTeller
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Guangzhou KingTeller.
Diversification Opportunities for Cabio Biotech and Guangzhou KingTeller
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cabio and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Cabio Biotech and Guangzhou KingTeller
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to generate 0.53 times more return on investment than Guangzhou KingTeller. However, Cabio Biotech Wuhan is 1.88 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 0.03 per unit of risk. If you would invest 1,878 in Cabio Biotech Wuhan on November 3, 2024 and sell it today you would earn a total of 127.00 from holding Cabio Biotech Wuhan or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Guangzhou KingTeller |
Cabio Biotech and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Guangzhou KingTeller
The main advantage of trading using opposite Cabio Biotech and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. PetroChina Co Ltd | Cabio Biotech vs. China Railway Construction | Cabio Biotech vs. China Mobile Limited | Cabio Biotech vs. Industrial and Commercial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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