Correlation Between Qingdao Hi and Dawning Information
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Dawning Information Industry, you can compare the effects of market volatilities on Qingdao Hi and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Dawning Information.
Diversification Opportunities for Qingdao Hi and Dawning Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Dawning is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Dawning Information go up and down completely randomly.
Pair Corralation between Qingdao Hi and Dawning Information
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to generate 0.57 times more return on investment than Dawning Information. However, Qingdao Hi Tech Moulds is 1.75 times less risky than Dawning Information. It trades about 0.0 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.13 per unit of risk. If you would invest 2,450 in Qingdao Hi Tech Moulds on September 13, 2024 and sell it today you would lose (17.00) from holding Qingdao Hi Tech Moulds or give up 0.69% 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. Dawning Information Industry
Performance |
| Timeline |
| Qingdao Hi Tech |
| Dawning Information |
Qingdao Hi and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi and Dawning Information
The main advantage of trading using opposite Qingdao Hi and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi vs. Loctek Ergonomic Technology |
| Dawning Information vs. Dhc Software Co | Dawning Information vs. ChengDu Hi Tech Development | Dawning Information vs. Sinofibers Technology Co | Dawning Information 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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