Correlation Between Qingdao Choho and China Everbright
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By analyzing existing cross correlation between Qingdao Choho Industrial and China Everbright Bank, you can compare the effects of market volatilities on Qingdao Choho and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and China Everbright.
Diversification Opportunities for Qingdao Choho and China Everbright
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and China Everbright go up and down completely randomly.
Pair Corralation between Qingdao Choho and China Everbright
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to under-perform the China Everbright. In addition to that, Qingdao Choho is 1.96 times more volatile than China Everbright Bank. It trades about -0.02 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.08 per unit of volatility. If you would invest 287.00 in China Everbright Bank on September 2, 2024 and sell it today you would earn a total of 73.00 from holding China Everbright Bank or generate 25.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. China Everbright Bank
Performance |
| Timeline |
| Qingdao Choho Industrial |
| China Everbright Bank |
Qingdao Choho and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and China Everbright
The main advantage of trading using opposite Qingdao Choho and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Qingdao Choho vs. BYD Co Ltd | Qingdao Choho vs. China Mobile Limited | Qingdao Choho vs. Agricultural Bank of | Qingdao Choho vs. Industrial and Commercial |
| China Everbright vs. Kweichow Moutai Co | China Everbright vs. Shenzhen Mindray Bio Medical | China Everbright vs. Jiangsu Pacific Quartz | China Everbright vs. G bits Network Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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