Correlation Between Qingdao Hi and Guangzhou Shiyuan
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Qingdao Hi and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Guangzhou Shiyuan.
Diversification Opportunities for Qingdao Hi and Guangzhou Shiyuan
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Guangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Qingdao Hi and Guangzhou Shiyuan
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to generate 1.14 times more return on investment than Guangzhou Shiyuan. However, Qingdao Hi is 1.14 times more volatile than Guangzhou Shiyuan Electronic. It trades about 0.17 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.12 per unit of risk. If you would invest 1,723 in Qingdao Hi Tech Moulds on September 12, 2024 and sell it today you would earn a total of 710.00 from holding Qingdao Hi Tech Moulds or generate 41.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Qingdao Hi Tech Moulds vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Qingdao Hi Tech |
| Guangzhou Shiyuan |
Qingdao Hi and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and Guangzhou Shiyuan
The main advantage of trading using opposite Qingdao Hi and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi vs. Loctek Ergonomic Technology |
| Guangzhou Shiyuan vs. Niutech Environment Technology | Guangzhou Shiyuan vs. Qingdao Hi Tech Moulds | Guangzhou Shiyuan vs. Kuang Chi Technologies | Guangzhou Shiyuan vs. HanS Laser Tech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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