Correlation Between Guangdong Skychem and Guangzhou KingTeller
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By analyzing existing cross correlation between Guangdong Skychem Technology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Guangdong Skychem 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 Guangdong Skychem with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Skychem and Guangzhou KingTeller.
Diversification Opportunities for Guangdong Skychem and Guangzhou KingTeller
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Guangzhou is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Skychem Technology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Guangdong Skychem 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 Guangdong Skychem Technology 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 Guangdong Skychem i.e., Guangdong Skychem and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Guangdong Skychem and Guangzhou KingTeller
Assuming the 90 days trading horizon Guangdong Skychem Technology is expected to generate 0.88 times more return on investment than Guangzhou KingTeller. However, Guangdong Skychem Technology is 1.14 times less risky than Guangzhou KingTeller. It trades about -0.06 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.09 per unit of risk. If you would invest 8,476 in Guangdong Skychem Technology on October 18, 2024 and sell it today you would lose (575.00) from holding Guangdong Skychem Technology or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Skychem Technology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Guangdong Skychem |
| Guangzhou KingTeller |
Guangdong Skychem and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Skychem and Guangzhou KingTeller
The main advantage of trading using opposite Guangdong Skychem and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Skychem 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.| Guangdong Skychem vs. Beijing Yanjing Brewery | Guangdong Skychem vs. Nanjing Putian Telecommunications | Guangdong Skychem vs. Ping An Insurance | Guangdong Skychem vs. TongFu Microelectronics Co |
| Guangzhou KingTeller vs. Hainan Mining Co | Guangzhou KingTeller vs. Shenyang Huitian Thermal | Guangzhou KingTeller vs. Bohai Leasing Co | Guangzhou KingTeller vs. Hefei Metalforming Mach |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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