Correlation Between Dongfeng Automobile and Qingdao Baheal
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By analyzing existing cross correlation between Dongfeng Automobile Co and Qingdao Baheal Medical, you can compare the effects of market volatilities on Dongfeng Automobile and Qingdao Baheal 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 Dongfeng Automobile with a short position of Qingdao Baheal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Qingdao Baheal.
Diversification Opportunities for Dongfeng Automobile and Qingdao Baheal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongfeng and Qingdao is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Qingdao Baheal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Baheal Medical and Dongfeng Automobile 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 Dongfeng Automobile Co are associated (or correlated) with Qingdao Baheal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Baheal Medical has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Qingdao Baheal go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Qingdao Baheal
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.43 times more return on investment than Qingdao Baheal. However, Dongfeng Automobile is 1.43 times more volatile than Qingdao Baheal Medical. It trades about 0.15 of its potential returns per unit of risk. Qingdao Baheal Medical is currently generating about 0.01 per unit of risk. If you would invest 654.00 in Dongfeng Automobile Co on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Dongfeng Automobile Co or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Qingdao Baheal Medical
Performance |
| Timeline |
| Dongfeng Automobile |
| Qingdao Baheal Medical |
Dongfeng Automobile and Qingdao Baheal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Qingdao Baheal
The main advantage of trading using opposite Dongfeng Automobile and Qingdao Baheal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Qingdao Baheal 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 Qingdao Baheal will offset losses from the drop in Qingdao Baheal's long position.| Dongfeng Automobile vs. Hunan Investment Group | Dongfeng Automobile vs. Vanfund Urban Investment | Dongfeng Automobile vs. Shenzhen Centralcon Investment | Dongfeng Automobile vs. Dareway Software Co |
| Qingdao Baheal vs. Linewell Software Co | Qingdao Baheal vs. Ningbo Fangzheng Automobile | Qingdao Baheal vs. Dongfeng Automobile Co | Qingdao Baheal vs. Shanghai Metersbonwe FashionAccessories |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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