Correlation Between Zhongtong Guomai and Qingdao Hi
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on Zhongtong Guomai and Qingdao Hi 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 Zhongtong Guomai with a short position of Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Qingdao Hi.
Diversification Opportunities for Zhongtong Guomai and Qingdao Hi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Qingdao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Qingdao Hi go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Qingdao Hi
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.71 times more return on investment than Qingdao Hi. However, Zhongtong Guomai Communication is 1.42 times less risky than Qingdao Hi. It trades about 0.06 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.02 per unit of risk. If you would invest 793.00 in Zhongtong Guomai Communication on September 14, 2024 and sell it today you would earn a total of 361.00 from holding Zhongtong Guomai Communication or generate 45.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Qingdao Hi Tech |
Zhongtong Guomai and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Qingdao Hi
The main advantage of trading using opposite Zhongtong Guomai and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Qingdao Hi 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 Hi will offset losses from the drop in Qingdao Hi's long position.| Zhongtong Guomai vs. Fiberhome Telecommunication Technologies | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Shenwu Energy Saving | Zhongtong Guomai vs. Agricultural Bank of |
| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi vs. Loctek Ergonomic Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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