Correlation Between China State and Qinghai Huzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Qinghai Huzhu Barley, you can compare the effects of market volatilities on China State and Qinghai Huzhu 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 China State with a short position of Qinghai Huzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Qinghai Huzhu.
Diversification Opportunities for China State and Qinghai Huzhu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Qinghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Qinghai Huzhu Barley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Huzhu Barley and China State 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 China State Construction are associated (or correlated) with Qinghai Huzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Huzhu Barley has no effect on the direction of China State i.e., China State and Qinghai Huzhu go up and down completely randomly.
Pair Corralation between China State and Qinghai Huzhu
Assuming the 90 days trading horizon China State is expected to generate 2.88 times less return on investment than Qinghai Huzhu. But when comparing it to its historical volatility, China State Construction is 1.06 times less risky than Qinghai Huzhu. It trades about 0.03 of its potential returns per unit of risk. Qinghai Huzhu Barley is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Qinghai Huzhu Barley on August 27, 2024 and sell it today you would earn a total of 91.00 from holding Qinghai Huzhu Barley or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Qinghai Huzhu Barley
Performance |
| Timeline |
| China State Construction |
| Qinghai Huzhu Barley |
China State and Qinghai Huzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Qinghai Huzhu
The main advantage of trading using opposite China State and Qinghai Huzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Qinghai Huzhu 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 Qinghai Huzhu will offset losses from the drop in Qinghai Huzhu's long position.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| Qinghai Huzhu vs. BYD Co Ltd | Qinghai Huzhu vs. China Mobile Limited | Qinghai Huzhu vs. Agricultural Bank of | Qinghai Huzhu vs. Industrial and Commercial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |