Correlation Between Guangdong Qunxing and Qingdao Haier
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Qunxing Toys and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Qingdao Haier.
Diversification Opportunities for Guangdong Qunxing and Qingdao Haier
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Qingdao is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys 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 Guangdong Qunxing 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 Guangdong Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and Qingdao Haier go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Qingdao Haier
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to under-perform the Qingdao Haier. In addition to that, Guangdong Qunxing is 1.36 times more volatile than Qingdao Haier Biomedical. It trades about -0.24 of its total potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about -0.15 per unit of volatility. If you would invest 3,520 in Qingdao Haier Biomedical on October 30, 2024 and sell it today you would lose (316.00) from holding Qingdao Haier Biomedical or give up 8.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Qingdao Haier Biomedical |
Guangdong Qunxing and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Qingdao Haier
The main advantage of trading using opposite Guangdong Qunxing and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. Ningbo Fangzheng Automobile | Guangdong Qunxing vs. Wintao Communications Co | Guangdong Qunxing vs. Runjian Communication Co | Guangdong Qunxing vs. Guangxi Wuzhou Communications |
| Qingdao Haier vs. Agricultural Bank of | Qingdao Haier vs. Industrial and Commercial | Qingdao Haier vs. Bank of China | Qingdao Haier vs. China Construction Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |