Correlation Between Tianjin Hi and Qingdao Haier
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Tianjin Hi and Qingdao Haier 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 Tianjin Hi with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Qingdao Haier.
Diversification Opportunities for Tianjin Hi and Qingdao Haier
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianjin and Qingdao is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical and Tianjin 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 Tianjin Hi Tech Development are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Qingdao Haier go up and down completely randomly.
Pair Corralation between Tianjin Hi and Qingdao Haier
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 0.9 times more return on investment than Qingdao Haier. However, Tianjin Hi Tech Development is 1.11 times less risky than Qingdao Haier. It trades about 0.09 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about -0.15 per unit of risk. If you would invest 275.00 in Tianjin Hi Tech Development on October 30, 2024 and sell it today you would earn a total of 11.00 from holding Tianjin Hi Tech Development or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Tianjin Hi Tech |
| Qingdao Haier Biomedical |
Tianjin Hi and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Qingdao Haier
The main advantage of trading using opposite Tianjin Hi and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Qingdao Haier 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 Haier will offset losses from the drop in Qingdao Haier's long position.| Tianjin Hi vs. Cultural Investment Holdings | Tianjin Hi vs. Northern United Publishing | Tianjin Hi vs. Chengdu Xingrong Investment | Tianjin Hi vs. Offcn Education Technology |
| Qingdao Haier vs. Agricultural Bank of | Qingdao Haier vs. Industrial and Commercial | Qingdao Haier vs. Bank of China | Qingdao Haier vs. China Construction Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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