Correlation Between Chongqing Road and Qingdao Choho
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By analyzing existing cross correlation between Chongqing Road Bridge and Qingdao Choho Industrial, you can compare the effects of market volatilities on Chongqing Road and Qingdao Choho 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 Chongqing Road with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Qingdao Choho.
Diversification Opportunities for Chongqing Road and Qingdao Choho
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Qingdao is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Chongqing Road 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 Chongqing Road Bridge are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Chongqing Road i.e., Chongqing Road and Qingdao Choho go up and down completely randomly.
Pair Corralation between Chongqing Road and Qingdao Choho
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.69 times more return on investment than Qingdao Choho. However, Chongqing Road is 1.69 times more volatile than Qingdao Choho Industrial. It trades about -0.02 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about -0.06 per unit of risk. If you would invest 679.00 in Chongqing Road Bridge on August 28, 2024 and sell it today you would lose (20.00) from holding Chongqing Road Bridge or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Chongqing Road Bridge |
| Qingdao Choho Industrial |
Chongqing Road and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Qingdao Choho
The main advantage of trading using opposite Chongqing Road and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road position performs unexpectedly, Qingdao Choho 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 Choho will offset losses from the drop in Qingdao Choho's long position.| Chongqing Road vs. Industrial and Commercial | Chongqing Road vs. China Construction Bank | Chongqing Road vs. Agricultural Bank of | Chongqing Road vs. Bank of China |
| Qingdao Choho vs. Loongson Technology Corp | Qingdao Choho vs. Chongqing Road Bridge | Qingdao Choho vs. Shenzhen Fortune Trend | Qingdao Choho vs. Wuhan Xianglong Power |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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