Correlation Between Qingdao Haier and Hunan Tyen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Haier Biomedical and Hunan Tyen Machinery, you can compare the effects of market volatilities on Qingdao Haier and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Hunan Tyen.
Diversification Opportunities for Qingdao Haier and Hunan Tyen
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Qingdao and Hunan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Hunan Tyen go up and down completely randomly.
Pair Corralation between Qingdao Haier and Hunan Tyen
Assuming the 90 days trading horizon Qingdao Haier is expected to generate 3.14 times less return on investment than Hunan Tyen. But when comparing it to its historical volatility, Qingdao Haier Biomedical is 1.03 times less risky than Hunan Tyen. It trades about 0.02 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Hunan Tyen Machinery on October 12, 2024 and sell it today you would earn a total of 100.00 from holding Hunan Tyen Machinery or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Hunan Tyen Machinery |
Qingdao Haier and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Hunan Tyen
The main advantage of trading using opposite Qingdao Haier and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen'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 |
| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |