Correlation Between Qingdao Citymedia and Jiangsu Changfa
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By analyzing existing cross correlation between Qingdao Citymedia Co and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Qingdao Citymedia and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Jiangsu Changfa.
Diversification Opportunities for Qingdao Citymedia and Jiangsu Changfa
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Jiangsu Changfa
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 0.93 times more return on investment than Jiangsu Changfa. However, Qingdao Citymedia Co is 1.08 times less risky than Jiangsu Changfa. It trades about 0.15 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about -0.08 per unit of risk. If you would invest 758.00 in Qingdao Citymedia Co on September 12, 2024 and sell it today you would earn a total of 60.00 from holding Qingdao Citymedia Co or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Qingdao Citymedia |
| Jiangsu Changfa Refr |
Qingdao Citymedia and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Jiangsu Changfa
The main advantage of trading using opposite Qingdao Citymedia and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Qingdao Citymedia vs. Kweichow Moutai Co | Qingdao Citymedia vs. Shenzhen Mindray Bio Medical | Qingdao Citymedia vs. G bits Network Technology | Qingdao Citymedia vs. Beijing Roborock Technology |
| Jiangsu Changfa vs. Agricultural Bank of | Jiangsu Changfa vs. Industrial and Commercial | Jiangsu Changfa vs. Bank of China | Jiangsu Changfa vs. PetroChina Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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