Correlation Between Ye Chiu and Qingdao Choho
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By analyzing existing cross correlation between Ye Chiu Metal and Qingdao Choho Industrial, you can compare the effects of market volatilities on Ye Chiu and Qingdao Choho 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 Ye Chiu with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Qingdao Choho.
Diversification Opportunities for Ye Chiu and Qingdao Choho
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Qingdao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Ye Chiu i.e., Ye Chiu and Qingdao Choho go up and down completely randomly.
Pair Corralation between Ye Chiu and Qingdao Choho
Assuming the 90 days trading horizon Ye Chiu is expected to generate 18.75 times less return on investment than Qingdao Choho. In addition to that, Ye Chiu is 1.11 times more volatile than Qingdao Choho Industrial. It trades about 0.0 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.04 per unit of volatility. If you would invest 2,479 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 281.00 from holding Qingdao Choho Industrial or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Ye Chiu Metal |
| Qingdao Choho Industrial |
Ye Chiu and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Qingdao Choho
The main advantage of trading using opposite Ye Chiu and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Qingdao Choho 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 Choho will offset losses from the drop in Qingdao Choho's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Hoshine Silicon Ind |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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