Correlation Between Shandong Publishing and Qingdao Haier
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By analyzing existing cross correlation between Shandong Publishing Media and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Qingdao Haier.
Diversification Opportunities for Shandong Publishing and Qingdao Haier
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Qingdao is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media 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 Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and Qingdao Haier go up and down completely randomly.
Pair Corralation between Shandong Publishing and Qingdao Haier
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 0.76 times more return on investment than Qingdao Haier. However, Shandong Publishing Media is 1.31 times less risky than Qingdao Haier. It trades about 0.05 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.01 per unit of risk. If you would invest 909.00 in Shandong Publishing Media on September 14, 2024 and sell it today you would earn a total of 226.00 from holding Shandong Publishing Media or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Shandong Publishing Media |
| Qingdao Haier Biomedical |
Shandong Publishing and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Qingdao Haier
The main advantage of trading using opposite Shandong Publishing and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.| Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. 159681 | Shandong Publishing vs. 159005 | Shandong Publishing vs. Loctek Ergonomic Technology |
| Qingdao Haier vs. Northern United Publishing | Qingdao Haier vs. Shandong Publishing Media | Qingdao Haier vs. China Express Airlines | Qingdao Haier vs. Juneyao Airlines |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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