Correlation Between Long Yuan and Qingdao Haier
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By analyzing existing cross correlation between Long Yuan Construction and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Long Yuan and Qingdao Haier 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 Long Yuan with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Qingdao Haier.
Diversification Opportunities for Long Yuan and Qingdao Haier
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Long and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical and Long Yuan 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 Long Yuan Construction are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Long Yuan i.e., Long Yuan and Qingdao Haier go up and down completely randomly.
Pair Corralation between Long Yuan and Qingdao Haier
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Qingdao Haier. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 1.07 times less risky than Qingdao Haier. The stock trades about 0.0 of its potential returns per unit of risk. The Qingdao Haier Biomedical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,949 in Qingdao Haier Biomedical on September 4, 2024 and sell it today you would lose (575.00) from holding Qingdao Haier Biomedical or give up 14.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Long Yuan Construction vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Long Yuan Construction |
| Qingdao Haier Biomedical |
Long Yuan and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Qingdao Haier
The main advantage of trading using opposite Long Yuan and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Long Yuan vs. China Life Insurance | Long Yuan vs. Cinda Securities Co | Long Yuan vs. Piotech Inc A | Long Yuan vs. Dongxing Sec Co |
| Qingdao Haier vs. Long Yuan Construction | Qingdao Haier vs. Maccura Biotechnology Co | Qingdao Haier vs. Ningbo Construction Co | Qingdao Haier vs. Xingguang Agricultural Mach |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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