Correlation Between Qingdao Port and HAMMONIA Schiffsholding
Can any of the company-specific risk be diversified away by investing in both Qingdao Port and HAMMONIA Schiffsholding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Qingdao Port and HAMMONIA Schiffsholding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qingdao Port International and HAMMONIA Schiffsholding AG, you can compare the effects of market volatilities on Qingdao Port and HAMMONIA Schiffsholding 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 Port with a short position of HAMMONIA Schiffsholding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Port and HAMMONIA Schiffsholding.
Diversification Opportunities for Qingdao Port and HAMMONIA Schiffsholding
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qingdao and HAMMONIA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Port International and HAMMONIA Schiffsholding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAMMONIA Schiffsholding and Qingdao Port 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 Port International are associated (or correlated) with HAMMONIA Schiffsholding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAMMONIA Schiffsholding has no effect on the direction of Qingdao Port i.e., Qingdao Port and HAMMONIA Schiffsholding go up and down completely randomly.
Pair Corralation between Qingdao Port and HAMMONIA Schiffsholding
Assuming the 90 days horizon Qingdao Port International is expected to generate 3.68 times more return on investment than HAMMONIA Schiffsholding. However, Qingdao Port is 3.68 times more volatile than HAMMONIA Schiffsholding AG. It trades about 0.11 of its potential returns per unit of risk. HAMMONIA Schiffsholding AG is currently generating about 0.01 per unit of risk. If you would invest 29.00 in Qingdao Port International on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Qingdao Port International or generate 120.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Port International vs. HAMMONIA Schiffsholding AG
Performance |
| Timeline |
| Qingdao Port Interna |
| HAMMONIA Schiffsholding |
Qingdao Port and HAMMONIA Schiffsholding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Port and HAMMONIA Schiffsholding
The main advantage of trading using opposite Qingdao Port and HAMMONIA Schiffsholding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Port position performs unexpectedly, HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding will offset losses from the drop in HAMMONIA Schiffsholding's long position.| Qingdao Port vs. BII Railway Transportation | Qingdao Port vs. Big 5 Sporting | Qingdao Port vs. TITANIUM TRANSPORTGROUP | Qingdao Port vs. SPORTING |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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