Correlation Between Northern United and Qingdao Haier
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By analyzing existing cross correlation between Northern United Publishing and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Qingdao Haier.
Diversification Opportunities for Northern United and Qingdao Haier
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and Qingdao is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Qingdao Haier go up and down completely randomly.
Pair Corralation between Northern United and Qingdao Haier
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 0.97 times more return on investment than Qingdao Haier. However, Northern United Publishing is 1.03 times less risky than Qingdao Haier. It trades about 0.02 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 719.00 in Northern United Publishing on September 14, 2024 and sell it today you would earn a total of 51.00 from holding Northern United Publishing or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Northern United Publ |
| Qingdao Haier Biomedical |
Northern United and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Qingdao Haier
The main advantage of trading using opposite Northern United and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Guangzhou Haige Communications | Northern United vs. Songz Automobile Air | Northern United vs. Zhongtong Guomai Communication | Northern United vs. Anhui Jianghuai Automobile |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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