Correlation Between National Silicon and Qingdao Hi
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By analyzing existing cross correlation between National Silicon Industry and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on National Silicon 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 National Silicon with a short position of Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Silicon and Qingdao Hi.
Diversification Opportunities for National Silicon and Qingdao Hi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between National and Qingdao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding National Silicon Industry 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 National Silicon 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 National Silicon Industry 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 National Silicon i.e., National Silicon and Qingdao Hi go up and down completely randomly.
Pair Corralation between National Silicon and Qingdao Hi
Assuming the 90 days trading horizon National Silicon Industry is expected to generate 0.66 times more return on investment than Qingdao Hi. However, National Silicon Industry is 1.52 times less risky than Qingdao Hi. It trades about 0.02 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.01 per unit of risk. If you would invest 2,033 in National Silicon Industry on September 12, 2024 and sell it today you would earn a total of 185.00 from holding National Silicon Industry or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Silicon Industry vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| National Silicon Industry |
| Qingdao Hi Tech |
National Silicon and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Silicon and Qingdao Hi
The main advantage of trading using opposite National Silicon and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Silicon 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.| National Silicon vs. Gansu Jiu Steel | National Silicon vs. Shandong Mining Machinery | National Silicon vs. Aba Chemicals Corp | National Silicon vs. BlueFocus Communication Group |
| Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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