Correlation Between Qingdao Hi and Tonghua Grape
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Tonghua Grape Wine, you can compare the effects of market volatilities on Qingdao Hi and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Tonghua Grape.
Diversification Opportunities for Qingdao Hi and Tonghua Grape
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Tonghua is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Tonghua Grape go up and down completely randomly.
Pair Corralation between Qingdao Hi and Tonghua Grape
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to generate 1.77 times more return on investment than Tonghua Grape. However, Qingdao Hi is 1.77 times more volatile than Tonghua Grape Wine. It trades about 0.01 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 2,231 in Qingdao Hi Tech Moulds on October 15, 2024 and sell it today you would lose (327.00) from holding Qingdao Hi Tech Moulds or give up 14.66% 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. Tonghua Grape Wine
Performance |
| Timeline |
| Qingdao Hi Tech |
| Tonghua Grape Wine |
Qingdao Hi and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and Tonghua Grape
The main advantage of trading using opposite Qingdao Hi and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Qingdao Hi vs. AVIC Fund Management | Qingdao Hi vs. Xiangyang Automobile Bearing | Qingdao Hi vs. State Grid InformationCommunication | Qingdao Hi vs. Sunwave Communications Co |
| Tonghua Grape vs. Peoples Insurance of | Tonghua Grape vs. Guangdong Jingyi Metal | Tonghua Grape vs. China Minmetals Rare | Tonghua Grape vs. Hengli Industrial Development |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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