Correlation Between Qingdao Choho and Zhuzhou Kibing
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By analyzing existing cross correlation between Qingdao Choho Industrial and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Qingdao Choho and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Zhuzhou Kibing.
Diversification Opportunities for Qingdao Choho and Zhuzhou Kibing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Zhuzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Qingdao Choho and Zhuzhou Kibing
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 1.8 times more return on investment than Zhuzhou Kibing. However, Qingdao Choho is 1.8 times more volatile than Zhuzhou Kibing Group. It trades about 0.1 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.09 per unit of risk. If you would invest 2,763 in Qingdao Choho Industrial on September 13, 2024 and sell it today you would earn a total of 168.00 from holding Qingdao Choho Industrial or generate 6.08% 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. Zhuzhou Kibing Group
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Zhuzhou Kibing Group |
Qingdao Choho and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Zhuzhou Kibing
The main advantage of trading using opposite Qingdao Choho and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Qingdao Choho vs. BeiGene | Qingdao Choho vs. Kweichow Moutai Co | Qingdao Choho vs. Beijing Roborock Technology | Qingdao Choho vs. G bits Network Technology |
| Zhuzhou Kibing vs. PetroChina Co Ltd | Zhuzhou Kibing vs. China Mobile Limited | Zhuzhou Kibing vs. CNOOC Limited | Zhuzhou Kibing vs. Ping An Insurance |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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