Correlation Between Qingdao Haier and FUYO GENERAL
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By analyzing existing cross correlation between Qingdao Haier Co and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Qingdao Haier and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and FUYO GENERAL.
Diversification Opportunities for Qingdao Haier and FUYO GENERAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and FUYO is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Co and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Qingdao Haier and FUYO GENERAL
Assuming the 90 days trading horizon Qingdao Haier Co is expected to generate 1.36 times more return on investment than FUYO GENERAL. However, Qingdao Haier is 1.36 times more volatile than FUYO GENERAL LEASE. It trades about 0.14 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about -0.02 per unit of risk. If you would invest 150.00 in Qingdao Haier Co on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Qingdao Haier Co or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Co vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Qingdao Haier |
| FUYO GENERAL LEASE |
Qingdao Haier and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and FUYO GENERAL
The main advantage of trading using opposite Qingdao Haier and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Qingdao Haier vs. FUYO GENERAL LEASE | Qingdao Haier vs. QBE Insurance Group | Qingdao Haier vs. ALBIS LEASING AG | Qingdao Haier vs. CDN IMPERIAL BANK |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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