Correlation Between China Express and Qingdao Haier
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By analyzing existing cross correlation between China Express Airlines and Qingdao Haier Biomedical, you can compare the effects of market volatilities on China Express 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 Express with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Qingdao Haier.
Diversification Opportunities for China Express and Qingdao Haier
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Qingdao is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines 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 Express 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 Express Airlines 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 Express i.e., China Express and Qingdao Haier go up and down completely randomly.
Pair Corralation between China Express and Qingdao Haier
Assuming the 90 days trading horizon China Express is expected to generate 1.08 times less return on investment than Qingdao Haier. But when comparing it to its historical volatility, China Express Airlines is 1.33 times less risky than Qingdao Haier. It trades about 0.1 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,538 in Qingdao Haier Biomedical on November 2, 2024 and sell it today you would earn a total of 666.00 from holding Qingdao Haier Biomedical or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| China Express Airlines |
| Qingdao Haier Biomedical |
China Express and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Qingdao Haier
The main advantage of trading using opposite China Express and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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 Express vs. Hunan Investment Group | China Express vs. Henan Shuanghui Investment | China Express vs. Luyin Investment Group | China Express vs. Harvest Fund Management |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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