Correlation Between Qingdao Choho and Hubei Geoway
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By analyzing existing cross correlation between Qingdao Choho Industrial and Hubei Geoway Investment, you can compare the effects of market volatilities on Qingdao Choho and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Hubei Geoway.
Diversification Opportunities for Qingdao Choho and Hubei Geoway
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Qingdao and Hubei is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Hubei Geoway go up and down completely randomly.
Pair Corralation between Qingdao Choho and Hubei Geoway
Assuming the 90 days trading horizon Qingdao Choho is expected to generate 3.11 times less return on investment than Hubei Geoway. But when comparing it to its historical volatility, Qingdao Choho Industrial is 1.34 times less risky than Hubei Geoway. It trades about 0.06 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Hubei Geoway Investment on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Hubei Geoway Investment or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Hubei Geoway Investment
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Hubei Geoway Investment |
Qingdao Choho and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Hubei Geoway
The main advantage of trading using opposite Qingdao Choho and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Rongsheng Petrochemical Co | Hubei Geoway vs. Hoshine Silicon Ind |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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