Correlation Between Aofu Environmental and Qingdao Port
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By analyzing existing cross correlation between Aofu Environmental Technology and Qingdao Port International, you can compare the effects of market volatilities on Aofu Environmental and Qingdao Port 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 Aofu Environmental with a short position of Qingdao Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Qingdao Port.
Diversification Opportunities for Aofu Environmental and Qingdao Port
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aofu and Qingdao is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Qingdao Port International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Port Interna and Aofu Environmental 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 Aofu Environmental Technology are associated (or correlated) with Qingdao Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Port Interna has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Qingdao Port go up and down completely randomly.
Pair Corralation between Aofu Environmental and Qingdao Port
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Qingdao Port. In addition to that, Aofu Environmental is 2.73 times more volatile than Qingdao Port International. It trades about -0.03 of its total potential returns per unit of risk. Qingdao Port International is currently generating about 0.17 per unit of volatility. If you would invest 833.00 in Qingdao Port International on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Qingdao Port International or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Qingdao Port International
Performance |
| Timeline |
| Aofu Environmental |
| Qingdao Port Interna |
Aofu Environmental and Qingdao Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Qingdao Port
The main advantage of trading using opposite Aofu Environmental and Qingdao Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Qingdao Port 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 Port will offset losses from the drop in Qingdao Port's long position.| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Shandong Gold Mining | Aofu Environmental vs. Rongsheng Petrochemical Co |
| Qingdao Port vs. Sinosteel Engineering and | Qingdao Port vs. Tongyu Communication | Qingdao Port vs. Sunwave Communications Co | Qingdao Port vs. Aofu Environmental 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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