Correlation Between Qingdao Citymedia and Chongqing Zhifei
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By analyzing existing cross correlation between Qingdao Citymedia Co and Chongqing Zhifei Bio, you can compare the effects of market volatilities on Qingdao Citymedia and Chongqing Zhifei 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 Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Chongqing Zhifei.
Diversification Opportunities for Qingdao Citymedia and Chongqing Zhifei
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Chongqing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of Qingdao Citymedia i.e., Qingdao Citymedia and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Chongqing Zhifei
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 0.95 times more return on investment than Chongqing Zhifei. However, Qingdao Citymedia Co is 1.05 times less risky than Chongqing Zhifei. It trades about 0.01 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about -0.04 per unit of risk. If you would invest 733.00 in Qingdao Citymedia Co on November 28, 2024 and sell it today you would lose (4.00) from holding Qingdao Citymedia Co or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Chongqing Zhifei Bio
Performance |
| Timeline |
| Qingdao Citymedia |
| Chongqing Zhifei Bio |
Qingdao Citymedia and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Chongqing Zhifei
The main advantage of trading using opposite Qingdao Citymedia and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| Qingdao Citymedia vs. Ming Yang Smart | Qingdao Citymedia vs. 159681 | Qingdao Citymedia vs. 159005 | Qingdao Citymedia vs. Loctek Ergonomic Technology |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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