Correlation Between Qingdao Choho and Guangzhou Haozhi
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By analyzing existing cross correlation between Qingdao Choho Industrial and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Qingdao Choho and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Guangzhou Haozhi.
Diversification Opportunities for Qingdao Choho and Guangzhou Haozhi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Qingdao Choho and Guangzhou Haozhi
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 0.68 times more return on investment than Guangzhou Haozhi. However, Qingdao Choho Industrial is 1.47 times less risky than Guangzhou Haozhi. It trades about 0.27 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.15 per unit of risk. If you would invest 2,790 in Qingdao Choho Industrial on October 28, 2024 and sell it today you would earn a total of 440.00 from holding Qingdao Choho Industrial or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Guangzhou Haozhi Ind |
Qingdao Choho and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Guangzhou Haozhi
The main advantage of trading using opposite Qingdao Choho and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Qingdao Choho vs. Baoshan Iron Steel | Qingdao Choho vs. Nanya New Material | Qingdao Choho vs. Anhui Guofeng Plastic | Qingdao Choho vs. King Strong New Material |
| Guangzhou Haozhi vs. Vats Liquor Chain | Guangzhou Haozhi vs. Dongfeng Automobile Co | Guangzhou Haozhi vs. Duzhe Publishing Media | Guangzhou Haozhi vs. Changjiang Publishing Media |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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