Correlation Between Qingdao Haier and Allwin Telecommunicatio
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Allwin Telecommunication Co, you can compare the effects of market volatilities on Qingdao Haier and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Allwin Telecommunicatio.
Diversification Opportunities for Qingdao Haier and Allwin Telecommunicatio
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Allwin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Qingdao Haier and Allwin Telecommunicatio
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Allwin Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Haier Biomedical is 1.04 times less risky than Allwin Telecommunicatio. The stock trades about -0.16 of its potential returns per unit of risk. The Allwin Telecommunication Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Allwin Telecommunication Co on October 29, 2024 and sell it today you would lose (23.00) from holding Allwin Telecommunication Co or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Allwin Telecommunicatio |
Qingdao Haier and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Allwin Telecommunicatio
The main advantage of trading using opposite Qingdao Haier and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Qingdao Haier vs. Qtone Education Group | Qingdao Haier vs. Masterwork Machinery | Qingdao Haier vs. Linzhou Heavy Machinery | Qingdao Haier vs. Shantui Construction Machinery |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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