Correlation Between Qingdao Citymedia and Yunnan Hongxiang
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By analyzing existing cross correlation between Qingdao Citymedia Co and Yunnan Hongxiang Yixintang, you can compare the effects of market volatilities on Qingdao Citymedia and Yunnan Hongxiang 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 Yunnan Hongxiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Yunnan Hongxiang.
Diversification Opportunities for Qingdao Citymedia and Yunnan Hongxiang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Yunnan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Yunnan Hongxiang Yixintang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Hongxiang Yix 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 Yunnan Hongxiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Hongxiang Yix has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Yunnan Hongxiang go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Yunnan Hongxiang
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 1.47 times more return on investment than Yunnan Hongxiang. However, Qingdao Citymedia is 1.47 times more volatile than Yunnan Hongxiang Yixintang. It trades about 0.21 of its potential returns per unit of risk. Yunnan Hongxiang Yixintang is currently generating about 0.13 per unit of risk. If you would invest 685.00 in Qingdao Citymedia Co on November 28, 2024 and sell it today you would earn a total of 44.00 from holding Qingdao Citymedia Co or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.12% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Yunnan Hongxiang Yixintang
Performance |
| Timeline |
| Qingdao Citymedia |
| Yunnan Hongxiang Yix |
Qingdao Citymedia and Yunnan Hongxiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Yunnan Hongxiang
The main advantage of trading using opposite Qingdao Citymedia and Yunnan Hongxiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Yunnan Hongxiang 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 Yunnan Hongxiang will offset losses from the drop in Yunnan Hongxiang's long position.| Qingdao Citymedia vs. Ming Yang Smart | Qingdao Citymedia vs. 159681 | Qingdao Citymedia vs. 159005 | Qingdao Citymedia vs. Loctek Ergonomic Technology |
| Yunnan Hongxiang vs. Ciwen Media Co | Yunnan Hongxiang vs. Tianjin Silvery Dragon | Yunnan Hongxiang vs. Tibet Huayu Mining | Yunnan Hongxiang vs. Chengtun Mining Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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