Correlation Between Qingdao Haier and ELECTROLUX
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By analyzing existing cross correlation between Qingdao Haier Co and ELECTROLUX B ADR2, you can compare the effects of market volatilities on Qingdao Haier and ELECTROLUX 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 ELECTROLUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and ELECTROLUX.
Diversification Opportunities for Qingdao Haier and ELECTROLUX
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qingdao and ELECTROLUX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Co and ELECTROLUX B ADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELECTROLUX B ADR2 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 Co are associated (or correlated) with ELECTROLUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELECTROLUX B ADR2 has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and ELECTROLUX go up and down completely randomly.
Pair Corralation between Qingdao Haier and ELECTROLUX
Assuming the 90 days trading horizon Qingdao Haier Co is expected to generate 0.55 times more return on investment than ELECTROLUX. However, Qingdao Haier Co is 1.82 times less risky than ELECTROLUX. It trades about 0.11 of its potential returns per unit of risk. ELECTROLUX B ADR2 is currently generating about -0.03 per unit of risk. If you would invest 100.00 in Qingdao Haier Co on September 12, 2024 and sell it today you would earn a total of 78.00 from holding Qingdao Haier Co or generate 78.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Co vs. ELECTROLUX B ADR2
Performance |
| Timeline |
| Qingdao Haier |
| ELECTROLUX B ADR2 |
Qingdao Haier and ELECTROLUX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and ELECTROLUX
The main advantage of trading using opposite Qingdao Haier and ELECTROLUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, ELECTROLUX 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 ELECTROLUX will offset losses from the drop in ELECTROLUX's long position.| Qingdao Haier vs. Qingdao Haier Co | Qingdao Haier vs. Mohawk Industries | Qingdao Haier vs. SEB SA | Qingdao Haier vs. Derwent London PLC |
| ELECTROLUX vs. Qingdao Haier Co | ELECTROLUX vs. Qingdao Haier Co | ELECTROLUX vs. Mohawk Industries | ELECTROLUX vs. SEB SA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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