Correlation Between Zhongshan Public and Qingdao Haier
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By analyzing existing cross correlation between Zhongshan Public Utilities and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Zhongshan Public and Qingdao Haier 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 Zhongshan Public with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Qingdao Haier.
Diversification Opportunities for Zhongshan Public and Qingdao Haier
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongshan and Qingdao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Qingdao Haier go up and down completely randomly.
Pair Corralation between Zhongshan Public and Qingdao Haier
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.51 times more return on investment than Qingdao Haier. However, Zhongshan Public Utilities is 1.96 times less risky than Qingdao Haier. It trades about 0.04 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about -0.05 per unit of risk. If you would invest 681.00 in Zhongshan Public Utilities on October 12, 2024 and sell it today you would earn a total of 178.00 from holding Zhongshan Public Utilities or generate 26.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Zhongshan Public Uti |
| Qingdao Haier Biomedical |
Zhongshan Public and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Qingdao Haier
The main advantage of trading using opposite Zhongshan Public and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Qingdao Haier 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 Haier will offset losses from the drop in Qingdao Haier's long position.| Zhongshan Public vs. Qingdao Choho Industrial | Zhongshan Public vs. Jonjee Hi tech Industrial | Zhongshan Public vs. Gem Year Industrial Co | Zhongshan Public vs. Universal Scientific Industrial |
| Qingdao Haier vs. Zhongshan Public Utilities | Qingdao Haier vs. Anhui Xinhua Media | Qingdao Haier vs. Hainan Airlines Co | Qingdao Haier vs. JiShi Media Co |
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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