Correlation Between Qingdao Haier and Weichai Heavy
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Weichai Heavy Machinery, you can compare the effects of market volatilities on Qingdao Haier and Weichai Heavy 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 Qingdao Haier with a short position of Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Weichai Heavy.
Diversification Opportunities for Qingdao Haier and Weichai Heavy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qingdao and Weichai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery and Qingdao Haier 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 Qingdao Haier Biomedical are associated (or correlated) with Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Weichai Heavy go up and down completely randomly.
Pair Corralation between Qingdao Haier and Weichai Heavy
Assuming the 90 days trading horizon Qingdao Haier is expected to generate 8.72 times less return on investment than Weichai Heavy. But when comparing it to its historical volatility, Qingdao Haier Biomedical is 1.17 times less risky than Weichai Heavy. It trades about 0.02 of its potential returns per unit of risk. Weichai Heavy Machinery is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 839.00 in Weichai Heavy Machinery on October 12, 2024 and sell it today you would earn a total of 987.00 from holding Weichai Heavy Machinery or generate 117.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Weichai Heavy Machinery
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Weichai Heavy Machinery |
Qingdao Haier and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Weichai Heavy
The main advantage of trading using opposite Qingdao Haier and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.| Qingdao Haier vs. Innovative Medical Management | Qingdao Haier vs. Fiberhome Telecommunication Technologies | Qingdao Haier vs. Zhejiang JIULI Hi tech | Qingdao Haier vs. Sichuan Jinshi Technology |
| Weichai Heavy vs. Lonkey Industrial Co | Weichai Heavy vs. Universal Scientific Industrial | Weichai Heavy vs. Sportsoul Co Ltd | Weichai Heavy vs. Tibet Huayu Mining |
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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