Correlation Between GreenTech Environmental and Kunshan Guoli
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By analyzing existing cross correlation between GreenTech Environmental Co and Kunshan Guoli Electronic, you can compare the effects of market volatilities on GreenTech Environmental and Kunshan Guoli 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 GreenTech Environmental with a short position of Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Kunshan Guoli.
Diversification Opportunities for GreenTech Environmental and Kunshan Guoli
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GreenTech and Kunshan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Kunshan Guoli go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Kunshan Guoli
Assuming the 90 days trading horizon GreenTech Environmental is expected to generate 1.39 times less return on investment than Kunshan Guoli. But when comparing it to its historical volatility, GreenTech Environmental Co is 1.09 times less risky than Kunshan Guoli. It trades about 0.08 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,117 in Kunshan Guoli Electronic on September 12, 2024 and sell it today you would earn a total of 1,318 from holding Kunshan Guoli Electronic or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| GreenTech Environmental |
| Kunshan Guoli Electronic |
GreenTech Environmental and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Kunshan Guoli
The main advantage of trading using opposite GreenTech Environmental and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Shandong Mining Machinery | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. BlueFocus Communication Group |
| Kunshan Guoli vs. Gansu Jiu Steel | Kunshan Guoli vs. Shandong Mining Machinery | Kunshan Guoli vs. Aba Chemicals Corp | Kunshan Guoli vs. BlueFocus Communication Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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