Correlation Between Guangzhou KingTeller and Sichuan Fulin
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Guangzhou KingTeller and Sichuan Fulin 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 KingTeller with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Sichuan Fulin.
Diversification Opportunities for Guangzhou KingTeller and Sichuan Fulin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Sichuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp and Guangzhou KingTeller 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 KingTeller Technology are associated (or correlated) with Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Sichuan Fulin
Assuming the 90 days trading horizon Guangzhou KingTeller is expected to generate 1.03 times less return on investment than Sichuan Fulin. In addition to that, Guangzhou KingTeller is 2.04 times more volatile than Sichuan Fulin Transportation. It trades about 0.09 of its total potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.2 per unit of volatility. If you would invest 682.00 in Sichuan Fulin Transportation on September 25, 2024 and sell it today you would earn a total of 74.00 from holding Sichuan Fulin Transportation or generate 10.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Sichuan Fulin Transportation
Performance |
Timeline |
Guangzhou KingTeller |
Sichuan Fulin Transp |
Guangzhou KingTeller and Sichuan Fulin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou KingTeller and Sichuan Fulin
The main advantage of trading using opposite Guangzhou KingTeller and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Bank of China |
Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. Shenzhen Mindray Bio Medical | Sichuan Fulin vs. Jiangsu Pacific Quartz | Sichuan Fulin vs. G bits Network Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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