Correlation Between Qingdao Haier and Thunder Software
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Thunder Software Technology, you can compare the effects of market volatilities on Qingdao Haier and Thunder Software 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 Thunder Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Thunder Software.
Diversification Opportunities for Qingdao Haier and Thunder Software
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Thunder is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Thunder Software Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Software Tec 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 Thunder Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Software Tec has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Thunder Software go up and down completely randomly.
Pair Corralation between Qingdao Haier and Thunder Software
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Thunder Software. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Haier Biomedical is 1.27 times less risky than Thunder Software. The stock trades about -0.04 of its potential returns per unit of risk. The Thunder Software Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,946 in Thunder Software Technology on November 2, 2024 and sell it today you would lose (3,732) from holding Thunder Software Technology or give up 37.52% 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. Thunder Software Technology
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Thunder Software Tec |
Qingdao Haier and Thunder Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Thunder Software
The main advantage of trading using opposite Qingdao Haier and Thunder Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Thunder Software 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 Thunder Software will offset losses from the drop in Thunder Software's long position.| Qingdao Haier vs. PetroChina Co Ltd | Qingdao Haier vs. China Railway Construction | Qingdao Haier vs. China Mobile Limited | Qingdao Haier vs. Industrial and Commercial |
| Thunder Software vs. Queclink Wireless Solutions | Thunder Software vs. Peoples Insurance of | Thunder Software vs. Shenwu Energy Saving | Thunder Software vs. Nanjing Putian Telecommunications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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