Correlation Between Hua Xia and Qingdao NovelBeam
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By analyzing existing cross correlation between Hua Xia Bank and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Hua Xia and Qingdao NovelBeam 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 Hua Xia with a short position of Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Qingdao NovelBeam.
Diversification Opportunities for Hua Xia and Qingdao NovelBeam
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hua and Qingdao is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Hua Xia i.e., Hua Xia and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Hua Xia and Qingdao NovelBeam
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.51 times more return on investment than Qingdao NovelBeam. However, Hua Xia Bank is 1.96 times less risky than Qingdao NovelBeam. It trades about 0.07 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about -0.04 per unit of risk. If you would invest 495.00 in Hua Xia Bank on December 4, 2024 and sell it today you would earn a total of 231.00 from holding Hua Xia Bank or generate 46.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Hua Xia Bank |
| Qingdao NovelBeam |
Hua Xia and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Qingdao NovelBeam
The main advantage of trading using opposite Hua Xia and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Qingdao NovelBeam 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 NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Hua Xia vs. ROPEOK Technology Group | Hua Xia vs. Xinjiang Communications Construction | Hua Xia vs. Hubei Forbon Technology | Hua Xia vs. Huasi Agricultural Development |
| Qingdao NovelBeam vs. Zhejiang Construction Investment | Qingdao NovelBeam vs. Zhe Jiang Headman | Qingdao NovelBeam vs. Tieling Newcity Investment | Qingdao NovelBeam vs. Hangzhou Zhongya Machinery |
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 CEOs Directory module to screen CEOs from public companies around the world.
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