Correlation Between Jiangsu Pacific and Qingdao Haier
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Jiangsu Pacific 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 Jiangsu Pacific with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Qingdao Haier.
Diversification Opportunities for Jiangsu Pacific and Qingdao Haier
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Qingdao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz 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 Jiangsu Pacific 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 Jiangsu Pacific Quartz 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 Jiangsu Pacific i.e., Jiangsu Pacific and Qingdao Haier go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Qingdao Haier
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Qingdao Haier. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Pacific Quartz is 1.18 times less risky than Qingdao Haier. The stock trades about -0.02 of its potential returns per unit of risk. The Qingdao Haier Biomedical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,142 in Qingdao Haier Biomedical on September 3, 2024 and sell it today you would earn a total of 186.00 from holding Qingdao Haier Biomedical or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Qingdao Haier Biomedical |
Jiangsu Pacific and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Qingdao Haier
The main advantage of trading using opposite Jiangsu Pacific and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific 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.| Jiangsu Pacific vs. Railway Signal Communication | Jiangsu Pacific vs. Chengdu Xinzhu RoadBridge | Jiangsu Pacific vs. Hainan Haiqi Transportation | Jiangsu Pacific vs. RoadMain T Co |
| Qingdao Haier vs. Long Yuan Construction | Qingdao Haier vs. Maccura Biotechnology Co | Qingdao Haier vs. Ningbo Construction Co | Qingdao Haier vs. Xingguang Agricultural Mach |
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 Stocks Directory module to find actively traded stocks across global markets.
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