Correlation Between Qingdao Hi and Jiujiang Shanshui
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Qingdao Hi and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Jiujiang Shanshui.
Diversification Opportunities for Qingdao Hi and Jiujiang Shanshui
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Jiujiang is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Qingdao Hi and Jiujiang Shanshui
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to generate 1.88 times more return on investment than Jiujiang Shanshui. However, Qingdao Hi is 1.88 times more volatile than Jiujiang Shanshui Technology. It trades about 0.02 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.0 per unit of risk. If you would invest 2,689 in Qingdao Hi Tech Moulds on September 14, 2024 and sell it today you would lose (233.00) from holding Qingdao Hi Tech Moulds or give up 8.66% of portfolio value 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Qingdao Hi Tech |
| Jiujiang Shanshui |
Qingdao Hi and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and Jiujiang Shanshui
The main advantage of trading using opposite Qingdao Hi and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi vs. Loctek Ergonomic Technology |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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