Correlation Between Juewei Food and Guangzhou KingTeller
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By analyzing existing cross correlation between Juewei Food Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Guangzhou KingTeller.
Diversification Opportunities for Juewei Food and Guangzhou KingTeller
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juewei and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Juewei Food and Guangzhou KingTeller
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.3 times less risky than Guangzhou KingTeller. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Guangzhou KingTeller Technology on September 19, 2024 and sell it today you would earn a total of 162.00 from holding Guangzhou KingTeller Technology or generate 40.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Guangzhou KingTeller Technolog
Performance |
Timeline |
Juewei Food |
Guangzhou KingTeller |
Juewei Food and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Guangzhou KingTeller
The main advantage of trading using opposite Juewei Food and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.Juewei Food vs. Nanjing Putian Telecommunications | Juewei Food vs. Tianjin Realty Development | Juewei Food vs. Kangyue Technology Co | Juewei Food vs. Shenzhen Hifuture Electric |
Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. Agricultural Bank of |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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