Correlation Between Jiangsu GDK and Guangzhou KingTeller
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Jiangsu GDK 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 Jiangsu GDK with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Guangzhou KingTeller.
Diversification Opportunities for Jiangsu GDK and Guangzhou KingTeller
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Guangzhou is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Jiangsu GDK 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 Jiangsu GDK Biotechnology 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 Jiangsu GDK i.e., Jiangsu GDK and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Guangzhou KingTeller
Assuming the 90 days trading horizon Jiangsu GDK is expected to generate 4.76 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Jiangsu GDK Biotechnology is 1.02 times less risky than Guangzhou KingTeller. It trades about 0.01 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 341.00 in Guangzhou KingTeller Technology on October 30, 2024 and sell it today you would earn a total of 117.00 from holding Guangzhou KingTeller Technology or generate 34.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Guangzhou KingTeller |
Jiangsu GDK and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Guangzhou KingTeller
The main advantage of trading using opposite Jiangsu GDK and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK 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.| Jiangsu GDK vs. Heilongjiang Transport Development | Jiangsu GDK vs. Lander Sports Development | Jiangsu GDK vs. Guangzhou Tinci Materials | Jiangsu GDK vs. Jiangnan Mould Plastic |
| Guangzhou KingTeller vs. Ping An Insurance | Guangzhou KingTeller vs. Anhui Huaren Health | Guangzhou KingTeller vs. Shandong Hongchuang Aluminum | Guangzhou KingTeller vs. Shanghai Yanpu Metal |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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