Correlation Between Qingdao Haier and Zhangjiagang Elegant
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Qingdao Haier and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Zhangjiagang Elegant.
Diversification Opportunities for Qingdao Haier and Zhangjiagang Elegant
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qingdao and Zhangjiagang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Qingdao Haier and Zhangjiagang Elegant
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Haier Biomedical is 1.07 times less risky than Zhangjiagang Elegant. The stock trades about -0.05 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 832.00 in Zhangjiagang Elegant Home on October 12, 2024 and sell it today you would earn a total of 20.00 from holding Zhangjiagang Elegant Home or generate 2.4% 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. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Zhangjiagang Elegant Home |
Qingdao Haier and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Zhangjiagang Elegant
The main advantage of trading using opposite Qingdao Haier and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Qingdao Haier vs. Zhongshan Public Utilities | Qingdao Haier vs. Anhui Xinhua Media | Qingdao Haier vs. Hainan Airlines Co | Qingdao Haier vs. JiShi Media Co |
| Zhangjiagang Elegant vs. Bosera CMSK Industrial | Zhangjiagang Elegant vs. Qingdao Choho Industrial | Zhangjiagang Elegant vs. Allgens Medical Technology | Zhangjiagang Elegant vs. Qingdao Haier Biomedical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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