Correlation Between Qingdao Haier and China Molybdenum
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By analyzing existing cross correlation between Qingdao Haier Biomedical and China Molybdenum Co, you can compare the effects of market volatilities on Qingdao Haier and China Molybdenum 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 China Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and China Molybdenum.
Diversification Opportunities for Qingdao Haier and China Molybdenum
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum 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 China Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and China Molybdenum go up and down completely randomly.
Pair Corralation between Qingdao Haier and China Molybdenum
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to generate 1.37 times more return on investment than China Molybdenum. However, Qingdao Haier is 1.37 times more volatile than China Molybdenum Co. It trades about -0.01 of its potential returns per unit of risk. China Molybdenum Co is currently generating about -0.02 per unit of risk. If you would invest 3,792 in Qingdao Haier Biomedical on September 1, 2024 and sell it today you would lose (464.00) from holding Qingdao Haier Biomedical or give up 12.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. China Molybdenum Co
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| China Molybdenum |
Qingdao Haier and China Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and China Molybdenum
The main advantage of trading using opposite Qingdao Haier and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, China Molybdenum 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 China Molybdenum will offset losses from the drop in China Molybdenum's long position.| Qingdao Haier vs. Nanjing Putian Telecommunications | Qingdao Haier vs. Shenzhen Hifuture Electric | Qingdao Haier vs. Tianjin Realty Development | Qingdao Haier vs. Shenyang Huitian Thermal |
| China Molybdenum vs. Touchstone International Medical | China Molybdenum vs. Bomin Electronics Co | China Molybdenum vs. Qingdao Haier Biomedical | China Molybdenum vs. Cofoe 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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