Correlation Between Qingdao Baheal and Shanghai Shuixing
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By analyzing existing cross correlation between Qingdao Baheal Medical and Shanghai Shuixing Home, you can compare the effects of market volatilities on Qingdao Baheal 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 Baheal with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Baheal and Shanghai Shuixing.
Diversification Opportunities for Qingdao Baheal and Shanghai Shuixing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Baheal Medical 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 Baheal 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 Baheal Medical 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 Baheal i.e., Qingdao Baheal and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Qingdao Baheal and Shanghai Shuixing
Assuming the 90 days trading horizon Qingdao Baheal is expected to generate 1.15 times less return on investment than Shanghai Shuixing. In addition to that, Qingdao Baheal is 1.43 times more volatile than Shanghai Shuixing Home. It trades about 0.02 of its total potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.04 per unit of volatility. If you would invest 1,283 in Shanghai Shuixing Home on September 3, 2024 and sell it today you would earn a total of 361.00 from holding Shanghai Shuixing Home or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Baheal Medical vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Qingdao Baheal Medical |
| Shanghai Shuixing Home |
Qingdao Baheal and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Baheal and Shanghai Shuixing
The main advantage of trading using opposite Qingdao Baheal and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Baheal 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 Baheal vs. Linewell Software Co | Qingdao Baheal vs. Ningbo Fangzheng Automobile | Qingdao Baheal vs. Dongfeng Automobile Co | Qingdao Baheal vs. Shanghai Metersbonwe FashionAccessories |
| Shanghai Shuixing vs. Cofoe Medical Technology | Shanghai Shuixing vs. Qingdao Baheal Medical | Shanghai Shuixing vs. Jinling Hotel Corp | Shanghai Shuixing vs. Allmed Medical Products |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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