Correlation Between Yingde Greatchem and Qinghai Huzhu
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Qinghai Huzhu Barley, you can compare the effects of market volatilities on Yingde Greatchem and Qinghai Huzhu 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 Yingde Greatchem with a short position of Qinghai Huzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Qinghai Huzhu.
Diversification Opportunities for Yingde Greatchem and Qinghai Huzhu
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and Qinghai is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Qinghai Huzhu Barley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Huzhu Barley and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Qinghai Huzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Huzhu Barley has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Qinghai Huzhu go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Qinghai Huzhu
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 1.27 times more return on investment than Qinghai Huzhu. However, Yingde Greatchem is 1.27 times more volatile than Qinghai Huzhu Barley. It trades about -0.01 of its potential returns per unit of risk. Qinghai Huzhu Barley is currently generating about -0.03 per unit of risk. If you would invest 3,155 in Yingde Greatchem Chemicals on September 2, 2024 and sell it today you would lose (610.00) from holding Yingde Greatchem Chemicals or give up 19.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Qinghai Huzhu Barley
Performance |
| Timeline |
| Yingde Greatchem Che |
| Qinghai Huzhu Barley |
Yingde Greatchem and Qinghai Huzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Qinghai Huzhu
The main advantage of trading using opposite Yingde Greatchem and Qinghai Huzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Qinghai Huzhu 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 Qinghai Huzhu will offset losses from the drop in Qinghai Huzhu's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Qinghai Huzhu vs. Olympic Circuit Technology | Qinghai Huzhu vs. Saurer Intelligent Technology | Qinghai Huzhu vs. Dhc Software Co | Qinghai Huzhu vs. Yingde Greatchem Chemicals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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