Correlation Between Shenyang Huitian and Qingdao Haier
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Huitian Thermal and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Qingdao Haier.
Diversification Opportunities for Shenyang Huitian and Qingdao Haier
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Qingdao is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Qingdao Haier go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Qingdao Haier
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.98 times more return on investment than Qingdao Haier. However, Shenyang Huitian Thermal is 1.02 times less risky than Qingdao Haier. It trades about 0.09 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 248.00 in Shenyang Huitian Thermal on September 3, 2024 and sell it today you would earn a total of 122.00 from holding Shenyang Huitian Thermal or generate 49.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.38% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Qingdao Haier Biomedical |
Shenyang Huitian and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Qingdao Haier
The main advantage of trading using opposite Shenyang Huitian and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
| Qingdao Haier vs. Long Yuan Construction | Qingdao Haier vs. Maccura Biotechnology Co | Qingdao Haier vs. Ningbo Construction Co | Qingdao Haier vs. Xingguang Agricultural Mach |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |