Correlation Between Qingdao Hi and HanS Laser
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and HanS Laser Tech, you can compare the effects of market volatilities on Qingdao Hi and HanS Laser 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 Hi with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and HanS Laser.
Diversification Opportunities for Qingdao Hi and HanS Laser
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and HanS is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Qingdao Hi 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 Hi Tech Moulds are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and HanS Laser go up and down completely randomly.
Pair Corralation between Qingdao Hi and HanS Laser
Assuming the 90 days trading horizon Qingdao Hi is expected to generate 1.86 times less return on investment than HanS Laser. In addition to that, Qingdao Hi is 1.85 times more volatile than HanS Laser Tech. It trades about 0.02 of its total potential returns per unit of risk. HanS Laser Tech is currently generating about 0.06 per unit of volatility. If you would invest 2,009 in HanS Laser Tech on September 14, 2024 and sell it today you would earn a total of 684.00 from holding HanS Laser Tech or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Hi Tech Moulds vs. HanS Laser Tech
Performance |
| Timeline |
| Qingdao Hi Tech |
| HanS Laser Tech |
Qingdao Hi and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and HanS Laser
The main advantage of trading using opposite Qingdao Hi and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi vs. Loctek Ergonomic Technology |
| HanS Laser vs. Industrial and Commercial | HanS Laser vs. Kweichow Moutai Co | HanS Laser vs. Agricultural Bank of | HanS Laser vs. China Mobile Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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