Correlation Between Cangzhou Mingzhu and Qingdao Citymedia
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Qingdao Citymedia Co, you can compare the effects of market volatilities on Cangzhou Mingzhu 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 Cangzhou Mingzhu with a short position of Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Qingdao Citymedia.
Diversification Opportunities for Cangzhou Mingzhu and Qingdao Citymedia
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cangzhou and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Qingdao Citymedia
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Qingdao Citymedia. But the stock apears to be less risky and, when comparing its historical volatility, Cangzhou Mingzhu Plastic is 1.6 times less risky than Qingdao Citymedia. The stock trades about -0.01 of its potential returns per unit of risk. The Qingdao Citymedia Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 661.00 in Qingdao Citymedia Co on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Qingdao Citymedia Co or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Qingdao Citymedia Co
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Qingdao Citymedia |
Cangzhou Mingzhu and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Qingdao Citymedia
The main advantage of trading using opposite Cangzhou Mingzhu and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu 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.| Cangzhou Mingzhu vs. Gansu Jiu Steel | Cangzhou Mingzhu vs. Ming Yang Smart | Cangzhou Mingzhu vs. Aba Chemicals Corp | Cangzhou Mingzhu vs. Loctek Ergonomic Technology |
| Qingdao Citymedia vs. Hubei Dinglong Chemical | Qingdao Citymedia vs. Shantou Wanshun Package | Qingdao Citymedia vs. Xiwang Foodstuffs Co | Qingdao Citymedia vs. Xiangtan Electrochemical Scientific |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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