Correlation Between Qingdao Citymedia and Jizhong Energy
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By analyzing existing cross correlation between Qingdao Citymedia Co and Jizhong Energy Resources, you can compare the effects of market volatilities on Qingdao Citymedia and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Jizhong Energy.
Diversification Opportunities for Qingdao Citymedia and Jizhong Energy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Jizhong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Jizhong Energy go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Jizhong Energy
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 1.37 times more return on investment than Jizhong Energy. However, Qingdao Citymedia is 1.37 times more volatile than Jizhong Energy Resources. It trades about 0.29 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.17 per unit of risk. If you would invest 688.00 in Qingdao Citymedia Co on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Qingdao Citymedia Co or generate 13.37% 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. Jizhong Energy Resources
Performance |
| Timeline |
| Qingdao Citymedia |
| Jizhong Energy Resources |
Qingdao Citymedia and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Jizhong Energy
The main advantage of trading using opposite Qingdao Citymedia and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Qingdao Citymedia vs. Ye Chiu Metal | Qingdao Citymedia vs. State Grid InformationCommunication | Qingdao Citymedia vs. Jilin Jlu Communication | Qingdao Citymedia vs. Guangdong Advertising Co |
| Jizhong Energy vs. Soyea Technology Co | Jizhong Energy vs. Tongding Interconnection Information | Jizhong Energy vs. Hangzhou Gisway Information | Jizhong Energy vs. Westone Information Industry |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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