Correlation Between AUPU Home and Guangzhou KingTeller
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By analyzing existing cross correlation between AUPU Home Style and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Guangzhou KingTeller.
Diversification Opportunities for AUPU Home and Guangzhou KingTeller
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUPU and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between AUPU Home and Guangzhou KingTeller
Assuming the 90 days trading horizon AUPU Home is expected to generate 2.21 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, AUPU Home Style is 1.72 times less risky than Guangzhou KingTeller. It trades about 0.13 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 346.00 in Guangzhou KingTeller Technology on September 6, 2024 and sell it today you would earn a total of 148.00 from holding Guangzhou KingTeller Technology or generate 42.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AUPU Home Style vs. Guangzhou KingTeller Technolog
Performance |
Timeline |
AUPU Home Style |
Guangzhou KingTeller |
AUPU Home and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AUPU Home and Guangzhou KingTeller
The main advantage of trading using opposite AUPU Home and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.AUPU Home vs. Shanghai CEO Environmental | AUPU Home vs. Ningbo Ligong Online | AUPU Home vs. Great Sun Foods Co | AUPU Home vs. Huaxia Fund Management |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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