Correlation Between Shandong Longquan and Qiming Information
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Qiming Information Technology, you can compare the effects of market volatilities on Shandong Longquan and Qiming Information 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 Shandong Longquan with a short position of Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Qiming Information.
Diversification Opportunities for Shandong Longquan and Qiming Information
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Qiming is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information and Shandong Longquan 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 Shandong Longquan Pipeline are associated (or correlated) with Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Shandong Longquan i.e., Shandong Longquan and Qiming Information go up and down completely randomly.
Pair Corralation between Shandong Longquan and Qiming Information
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 0.54 times more return on investment than Qiming Information. However, Shandong Longquan Pipeline is 1.87 times less risky than Qiming Information. It trades about -0.3 of its potential returns per unit of risk. Qiming Information Technology is currently generating about -0.22 per unit of risk. If you would invest 516.00 in Shandong Longquan Pipeline on October 14, 2024 and sell it today you would lose (67.00) from holding Shandong Longquan Pipeline or give up 12.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Qiming Information Technology
Performance |
| Timeline |
| Shandong Longquan |
| Qiming Information |
Shandong Longquan and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Qiming Information
The main advantage of trading using opposite Shandong Longquan and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Shandong Longquan vs. Dalian Thermal Power | Shandong Longquan vs. Anhui Jianghuai Automobile | Shandong Longquan vs. Dongfeng Automobile Co | Shandong Longquan vs. Guocheng Mining Co |
| Qiming Information vs. Heren Health Co | Qiming Information vs. Zhejiang Kingland Pipeline | Qiming Information vs. Shandong Longquan Pipeline | Qiming Information vs. Huatian Hotel 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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