Correlation Between Xian International and Qingdao Choho
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By analyzing existing cross correlation between Xian International Medical and Qingdao Choho Industrial, you can compare the effects of market volatilities on Xian International and Qingdao Choho 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 Xian International with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Qingdao Choho.
Diversification Opportunities for Xian International and Qingdao Choho
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Xian International 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 Xian International Medical are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Xian International i.e., Xian International and Qingdao Choho go up and down completely randomly.
Pair Corralation between Xian International and Qingdao Choho
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Qingdao Choho. In addition to that, Xian International is 1.03 times more volatile than Qingdao Choho Industrial. It trades about -0.04 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about -0.02 per unit of volatility. If you would invest 3,401 in Qingdao Choho Industrial on September 2, 2024 and sell it today you would lose (641.00) from holding Qingdao Choho Industrial or give up 18.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Xian International |
| Qingdao Choho Industrial |
Xian International and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Qingdao Choho
The main advantage of trading using opposite Xian International and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Xian International vs. Dalian Zeus Entertainment | Xian International vs. Shenzhen Kexin Communication | Xian International vs. Threes Company Media | Xian International vs. Eastern Communications Co |
| Qingdao Choho vs. BYD Co Ltd | Qingdao Choho vs. China Mobile Limited | Qingdao Choho vs. Agricultural Bank of | Qingdao Choho vs. Industrial and Commercial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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