Correlation Between Qingdao Citymedia and Hangzhou Weiguang
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By analyzing existing cross correlation between Qingdao Citymedia Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Qingdao Citymedia and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Hangzhou Weiguang.
Diversification Opportunities for Qingdao Citymedia and Hangzhou Weiguang
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qingdao and Hangzhou is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Hangzhou Weiguang
Assuming the 90 days trading horizon Qingdao Citymedia is expected to generate 17.29 times less return on investment than Hangzhou Weiguang. But when comparing it to its historical volatility, Qingdao Citymedia Co is 1.23 times less risky than Hangzhou Weiguang. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,167 in Hangzhou Weiguang Electronic on November 28, 2024 and sell it today you would earn a total of 1,221 from holding Hangzhou Weiguang Electronic or generate 56.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Qingdao Citymedia |
| Hangzhou Weiguang |
Qingdao Citymedia and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Hangzhou Weiguang
The main advantage of trading using opposite Qingdao Citymedia and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Qingdao Citymedia vs. Ming Yang Smart | Qingdao Citymedia vs. 159681 | Qingdao Citymedia vs. 159005 | Qingdao Citymedia vs. Loctek Ergonomic Technology |
| Hangzhou Weiguang vs. Tieling Newcity Investment | Hangzhou Weiguang vs. Vanfund Urban Investment | Hangzhou Weiguang vs. Chengdu B ray Media | Hangzhou Weiguang vs. Cultural Investment Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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