Correlation Between Anhui Guofeng and Qingdao Choho
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Guofeng Plastic and Qingdao Choho Industrial, you can compare the effects of market volatilities on Anhui Guofeng 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 Anhui Guofeng with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Guofeng and Qingdao Choho.
Diversification Opportunities for Anhui Guofeng and Qingdao Choho
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Qingdao is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Guofeng Plastic 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 Anhui Guofeng 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 Anhui Guofeng Plastic 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 Anhui Guofeng i.e., Anhui Guofeng and Qingdao Choho go up and down completely randomly.
Pair Corralation between Anhui Guofeng and Qingdao Choho
Assuming the 90 days trading horizon Anhui Guofeng is expected to generate 2.58 times less return on investment than Qingdao Choho. But when comparing it to its historical volatility, Anhui Guofeng Plastic is 1.27 times less risky than Qingdao Choho. It trades about 0.19 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,556 in Qingdao Choho Industrial on November 6, 2024 and sell it today you would earn a total of 533.00 from holding Qingdao Choho Industrial or generate 20.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Guofeng Plastic vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Anhui Guofeng Plastic |
| Qingdao Choho Industrial |
Anhui Guofeng and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Guofeng and Qingdao Choho
The main advantage of trading using opposite Anhui Guofeng and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Guofeng 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.| Anhui Guofeng vs. Sichuan Hebang Biotechnology | Anhui Guofeng vs. Allwin Telecommunication Co | Anhui Guofeng vs. Maccura Biotechnology Co | Anhui Guofeng vs. Guangxi Wuzhou Communications |
| Qingdao Choho vs. GuoChuang Software Co | Qingdao Choho vs. China Everbright Bank | Qingdao Choho vs. Hua Xia Bank | Qingdao Choho vs. Glodon Software 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |