Correlation Between Ye Chiu and Qingdao Baheal
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By analyzing existing cross correlation between Ye Chiu Metal and Qingdao Baheal Medical, you can compare the effects of market volatilities on Ye Chiu and Qingdao Baheal 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 Baheal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Qingdao Baheal.
Diversification Opportunities for Ye Chiu and Qingdao Baheal
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Qingdao Baheal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Baheal Medical 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 Baheal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Baheal Medical has no effect on the direction of Ye Chiu i.e., Ye Chiu and Qingdao Baheal go up and down completely randomly.
Pair Corralation between Ye Chiu and Qingdao Baheal
Assuming the 90 days trading horizon Ye Chiu is expected to generate 7.94 times less return on investment than Qingdao Baheal. But when comparing it to its historical volatility, Ye Chiu Metal is 1.16 times less risky than Qingdao Baheal. It trades about 0.0 of its potential returns per unit of risk. Qingdao Baheal Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,264 in Qingdao Baheal Medical on September 14, 2024 and sell it today you would earn a total of 539.00 from holding Qingdao Baheal Medical or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Qingdao Baheal Medical
Performance |
| Timeline |
| Ye Chiu Metal |
| Qingdao Baheal Medical |
Ye Chiu and Qingdao Baheal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Qingdao Baheal
The main advantage of trading using opposite Ye Chiu and Qingdao Baheal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Qingdao Baheal 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 Baheal will offset losses from the drop in Qingdao Baheal's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Qingdao Baheal vs. Ye Chiu Metal | Qingdao Baheal vs. Guangdong Jingyi Metal | Qingdao Baheal vs. Iat Automobile Technology | Qingdao Baheal vs. Guangzhou Haige Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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