Correlation Between Guangzhou KingTeller and Hubei Huaqiang
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Hubei Huaqiang High Tech, you can compare the effects of market volatilities on Guangzhou KingTeller and Hubei Huaqiang 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 Hubei Huaqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Hubei Huaqiang.
Diversification Opportunities for Guangzhou KingTeller and Hubei Huaqiang
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hubei is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Hubei Huaqiang High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Huaqiang High 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 Hubei Huaqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Huaqiang High has no effect on the direction of Guangzhou KingTeller i.e., Guangzhou KingTeller and Hubei Huaqiang go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Hubei Huaqiang
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 2.66 times more return on investment than Hubei Huaqiang. However, Guangzhou KingTeller is 2.66 times more volatile than Hubei Huaqiang High Tech. It trades about -0.01 of its potential returns per unit of risk. Hubei Huaqiang High Tech is currently generating about -0.15 per unit of risk. If you would invest 448.00 in Guangzhou KingTeller Technology on October 6, 2024 and sell it today you would lose (28.00) from holding Guangzhou KingTeller Technology or give up 6.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Hubei Huaqiang High Tech
Performance |
Timeline |
Guangzhou KingTeller |
Hubei Huaqiang High |
Guangzhou KingTeller and Hubei Huaqiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou KingTeller and Hubei Huaqiang
The main advantage of trading using opposite Guangzhou KingTeller and Hubei Huaqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller position performs unexpectedly, Hubei Huaqiang 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 Hubei Huaqiang will offset losses from the drop in Hubei Huaqiang's long position.Guangzhou KingTeller vs. Shenzhen MYS Environmental | Guangzhou KingTeller vs. AVIC Fund Management | Guangzhou KingTeller vs. Shenzhen Bingchuan Network | Guangzhou KingTeller vs. Rongan Property Co |
Hubei Huaqiang vs. Kweichow Moutai Co | Hubei Huaqiang vs. Shenzhen Mindray Bio Medical | Hubei Huaqiang vs. G bits Network Technology | Hubei Huaqiang vs. Beijing Roborock 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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