Correlation Between Guangzhou KingTeller and Namchow Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou KingTeller Technology and Namchow Food Group, you can compare the effects of market volatilities on Guangzhou KingTeller and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Namchow Food.
Diversification Opportunities for Guangzhou KingTeller and Namchow Food
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Namchow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Namchow Food go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Namchow Food
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Namchow Food. In addition to that, Guangzhou KingTeller is 1.93 times more volatile than Namchow Food Group. It trades about -0.36 of its total potential returns per unit of risk. Namchow Food Group is currently generating about -0.27 per unit of volatility. If you would invest 1,871 in Namchow Food Group on October 12, 2024 and sell it today you would lose (253.00) from holding Namchow Food Group or give up 13.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Namchow Food Group
Performance |
Timeline |
Guangzhou KingTeller |
Namchow Food Group |
Guangzhou KingTeller and Namchow Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou KingTeller and Namchow Food
The main advantage of trading using opposite Guangzhou KingTeller and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.Guangzhou KingTeller vs. Guangzhou Dongfang Hotel | Guangzhou KingTeller vs. TongFu Microelectronics Co | Guangzhou KingTeller vs. Anhui Deli Household | Guangzhou KingTeller vs. BTG Hotels Group |
Namchow Food vs. Vanfund Urban Investment | Namchow Food vs. Cultural Investment Holdings | Namchow Food vs. China Asset Management | Namchow Food vs. Guangzhou KingTeller 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |