Correlation Between Qingdao Citymedia and Hunan Investment
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By analyzing existing cross correlation between Qingdao Citymedia Co and Hunan Investment Group, you can compare the effects of market volatilities on Qingdao Citymedia and Hunan Investment 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 Citymedia with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Hunan Investment.
Diversification Opportunities for Qingdao Citymedia and Hunan Investment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Hunan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Qingdao Citymedia 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 Citymedia Co are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Hunan Investment go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Hunan Investment
Assuming the 90 days trading horizon Qingdao Citymedia is expected to generate 10.91 times less return on investment than Hunan Investment. In addition to that, Qingdao Citymedia is 1.01 times more volatile than Hunan Investment Group. It trades about 0.01 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.08 per unit of volatility. If you would invest 410.00 in Hunan Investment Group on September 1, 2024 and sell it today you would earn a total of 159.00 from holding Hunan Investment Group or generate 38.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Hunan Investment Group
Performance |
| Timeline |
| Qingdao Citymedia |
| Hunan Investment |
Qingdao Citymedia and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Hunan Investment
The main advantage of trading using opposite Qingdao Citymedia and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Qingdao Citymedia vs. Cangzhou Mingzhu Plastic | Qingdao Citymedia vs. Ningbo Tip Rubber | Qingdao Citymedia vs. Hubei Geoway Investment | Qingdao Citymedia vs. Zhejiang Construction Investment |
| Hunan Investment vs. Jiangsu Phoenix Publishing | Hunan Investment vs. Union Semiconductor Co | Hunan Investment vs. China Publishing Media | Hunan Investment vs. GigaDevice SemiconductorBeiji |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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