Correlation Between China Securities and Qingdao Haier
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By analyzing existing cross correlation between China Securities 800 and Qingdao Haier Biomedical, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Qingdao Haier.
Diversification Opportunities for China Securities and Qingdao Haier
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Qingdao is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Qingdao Haier go up and down completely randomly.
Pair Corralation between China Securities and Qingdao Haier
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.4 times more return on investment than Qingdao Haier. However, China Securities 800 is 2.47 times less risky than Qingdao Haier. It trades about 0.02 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.0 per unit of risk. If you would invest 405,932 in China Securities 800 on September 12, 2024 and sell it today you would earn a total of 26,566 from holding China Securities 800 or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Qingdao Haier Biomedical
Performance |
| Timeline |
China Securities and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Qingdao Haier Biomedical
Pair trading matchups for Qingdao Haier
Pair Trading with China Securities and Qingdao Haier
The main advantage of trading using opposite China Securities and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Ningxia Building Materials | China Securities vs. Western Metal Materials | China Securities vs. Ningbo Bohui Chemical | China Securities vs. Hengerda New Materials |
| Qingdao Haier vs. Jinhui Mining Co | Qingdao Haier vs. Xinjiang Tianrun Dairy | Qingdao Haier vs. Chenzhou Jingui Silver | Qingdao Haier vs. Zijin Mining Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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