Correlation Between Hunan Tyen and Qingdao Haier
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By analyzing existing cross correlation between Hunan Tyen Machinery and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Qingdao Haier.
Diversification Opportunities for Hunan Tyen and Qingdao Haier
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hunan and Qingdao is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery 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 Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Qingdao Haier go up and down completely randomly.
Pair Corralation between Hunan Tyen and Qingdao Haier
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.03 times more return on investment than Qingdao Haier. However, Hunan Tyen is 1.03 times more volatile than Qingdao Haier Biomedical. It trades about 0.05 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.02 per unit of risk. If you would invest 407.00 in Hunan Tyen Machinery on October 12, 2024 and sell it today you would earn a total of 100.00 from holding Hunan Tyen Machinery or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Qingdao Haier Biomedical |
Hunan Tyen and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Qingdao Haier
The main advantage of trading using opposite Hunan Tyen and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank Co |
| Qingdao Haier vs. Innovative Medical Management | Qingdao Haier vs. Fiberhome Telecommunication Technologies | Qingdao Haier vs. Zhejiang JIULI Hi tech | Qingdao Haier vs. Sichuan Jinshi Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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