Correlation Between Qingdao Choho and Zhejiang Construction
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By analyzing existing cross correlation between Qingdao Choho Industrial and Zhejiang Construction Investment, you can compare the effects of market volatilities on Qingdao Choho and Zhejiang Construction 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 Qingdao Choho with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Zhejiang Construction.
Diversification Opportunities for Qingdao Choho and Zhejiang Construction
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Zhejiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Qingdao Choho 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 Qingdao Choho Industrial are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Qingdao Choho and Zhejiang Construction
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 0.89 times more return on investment than Zhejiang Construction. However, Qingdao Choho Industrial is 1.13 times less risky than Zhejiang Construction. It trades about -0.02 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.04 per unit of risk. If you would invest 4,320 in Qingdao Choho Industrial on September 4, 2024 and sell it today you would lose (1,511) from holding Qingdao Choho Industrial or give up 34.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Zhejiang Construction |
Qingdao Choho and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Zhejiang Construction
The main advantage of trading using opposite Qingdao Choho and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Qingdao Choho vs. Cultural Investment Holdings | Qingdao Choho vs. Gome Telecom Equipment | Qingdao Choho vs. Bus Online Co | Qingdao Choho vs. Holitech Technology Co |
| Zhejiang Construction vs. Youyou Foods Co | Zhejiang Construction vs. Shandong Sinoglory Health | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Guangdong Wens Foodstuff |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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