Correlation Between Qingdao Hi and Shenzhen MYS
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Qingdao Hi and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Shenzhen MYS.
Diversification Opportunities for Qingdao Hi and Shenzhen MYS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Qingdao Hi and Shenzhen MYS
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to under-perform the Shenzhen MYS. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Hi Tech Moulds is 1.23 times less risky than Shenzhen MYS. The stock trades about -0.11 of its potential returns per unit of risk. The Shenzhen MYS Environmental is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 375.00 in Shenzhen MYS Environmental on September 28, 2024 and sell it today you would lose (7.00) from holding Shenzhen MYS Environmental or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Hi Tech Moulds vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Qingdao Hi Tech |
| Shenzhen MYS Environ |
Qingdao Hi and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and Shenzhen MYS
The main advantage of trading using opposite Qingdao Hi and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Qingdao Hi vs. Bank of China | Qingdao Hi vs. Kweichow Moutai Co | Qingdao Hi vs. PetroChina Co Ltd | Qingdao Hi vs. Bank of Communications |
| Shenzhen MYS vs. Guocheng Mining Co | Shenzhen MYS vs. Zhengzhou Coal Mining | Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Qingdao Hi Tech Moulds |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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