Correlation Between Qingdao Haier and Dongguan Tarry
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Qingdao Haier and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Dongguan Tarry.
Diversification Opportunities for Qingdao Haier and Dongguan Tarry
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Dongguan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Qingdao Haier and Dongguan Tarry
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Dongguan Tarry. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Haier Biomedical is 1.14 times less risky than Dongguan Tarry. The stock trades about -0.05 of its potential returns per unit of risk. The Dongguan Tarry Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,230 in Dongguan Tarry Electronics on October 16, 2024 and sell it today you would earn a total of 1,446 from holding Dongguan Tarry Electronics or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Dongguan Tarry Elect |
Qingdao Haier and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Dongguan Tarry
The main advantage of trading using opposite Qingdao Haier and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Qingdao Haier vs. Guangdong Qunxing Toys | Qingdao Haier vs. Eastern Communications Co | Qingdao Haier vs. Sichuan Jinshi Technology | Qingdao Haier vs. Tianjin Hi Tech Development |
| Dongguan Tarry vs. Shenzhen AV Display Co | Dongguan Tarry vs. Qingdao Haier Biomedical | Dongguan Tarry vs. Everdisplay Optronics Shanghai | Dongguan Tarry vs. Eyebright Medical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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