Correlation Between Asia Potash and Qingdao Citymedia
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By analyzing existing cross correlation between Asia Potash International and Qingdao Citymedia Co, you can compare the effects of market volatilities on Asia Potash and Qingdao Citymedia 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 Asia Potash with a short position of Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Potash and Qingdao Citymedia.
Diversification Opportunities for Asia Potash and Qingdao Citymedia
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asia and Qingdao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asia Potash International and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia and Asia Potash 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 Asia Potash International are associated (or correlated) with Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of Asia Potash i.e., Asia Potash and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Asia Potash and Qingdao Citymedia
Assuming the 90 days trading horizon Asia Potash is expected to generate 1.27 times less return on investment than Qingdao Citymedia. In addition to that, Asia Potash is 1.61 times more volatile than Qingdao Citymedia Co. It trades about 0.15 of its total potential returns per unit of risk. Qingdao Citymedia Co is currently generating about 0.31 per unit of volatility. If you would invest 697.00 in Qingdao Citymedia Co on September 4, 2024 and sell it today you would earn a total of 101.00 from holding Qingdao Citymedia Co or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Potash International vs. Qingdao Citymedia Co
Performance |
| Timeline |
| Asia Potash International |
| Qingdao Citymedia |
Asia Potash and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Potash and Qingdao Citymedia
The main advantage of trading using opposite Asia Potash and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Potash position performs unexpectedly, Qingdao Citymedia 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 Citymedia will offset losses from the drop in Qingdao Citymedia's long position.| Asia Potash vs. Qingdao Citymedia Co | Asia Potash vs. Gem Year Industrial Co | Asia Potash vs. Inly Media Co | Asia Potash vs. JiShi Media Co |
| Qingdao Citymedia vs. JuneYao Dairy Co | Qingdao Citymedia vs. Great Sun Foods Co | Qingdao Citymedia vs. Xiwang Foodstuffs Co | Qingdao Citymedia vs. Ligao Foods CoLtd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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