Correlation Between Qingdao Choho and Shanghai Shuixing
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By analyzing existing cross correlation between Qingdao Choho Industrial and Shanghai Shuixing Home, you can compare the effects of market volatilities on Qingdao Choho and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Shanghai Shuixing.
Diversification Opportunities for Qingdao Choho and Shanghai Shuixing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Qingdao Choho and Shanghai Shuixing
Assuming the 90 days trading horizon Qingdao Choho is expected to generate 2.63 times less return on investment than Shanghai Shuixing. But when comparing it to its historical volatility, Qingdao Choho Industrial is 1.07 times less risky than Shanghai Shuixing. It trades about 0.1 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,384 in Shanghai Shuixing Home on September 13, 2024 and sell it today you would earn a total of 256.00 from holding Shanghai Shuixing Home or generate 18.5% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Shanghai Shuixing Home |
Qingdao Choho and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Shanghai Shuixing
The main advantage of trading using opposite Qingdao Choho and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing'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 |
| Shanghai Shuixing vs. Nanjing Putian Telecommunications | Shanghai Shuixing vs. Tianjin Realty Development | Shanghai Shuixing vs. Kangyue Technology Co | Shanghai Shuixing vs. Shenzhen Hifuture Electric |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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