Correlation Between Qingdao Haier and Sleep Number
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By analyzing existing cross correlation between Qingdao Haier Co and Sleep Number Corp, you can compare the effects of market volatilities on Qingdao Haier and Sleep Number 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 Sleep Number. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Sleep Number.
Diversification Opportunities for Qingdao Haier and Sleep Number
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Sleep is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Co and Sleep Number Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sleep Number Corp 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 Sleep Number. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sleep Number Corp has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Sleep Number go up and down completely randomly.
Pair Corralation between Qingdao Haier and Sleep Number
Assuming the 90 days trading horizon Qingdao Haier Co is expected to under-perform the Sleep Number. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Haier Co is 3.63 times less risky than Sleep Number. The stock trades about -0.01 of its potential returns per unit of risk. The Sleep Number Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Sleep Number Corp on September 13, 2024 and sell it today you would earn a total of 540.00 from holding Sleep Number Corp or generate 39.13% 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. Sleep Number Corp
Performance |
| Timeline |
| Qingdao Haier |
| Sleep Number Corp |
Qingdao Haier and Sleep Number Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Sleep Number
The main advantage of trading using opposite Qingdao Haier and Sleep Number positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Sleep Number 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 Sleep Number will offset losses from the drop in Sleep Number's long position.| Qingdao Haier vs. EAT WELL INVESTMENT | Qingdao Haier vs. WisdomTree Investments | Qingdao Haier vs. REINET INVESTMENTS SCA | Qingdao Haier vs. DIVERSIFIED ROYALTY |
| Sleep Number vs. AGNC INVESTMENT | Sleep Number vs. CVR Medical Corp | Sleep Number vs. HK Electric Investments | Sleep Number vs. CDL INVESTMENT |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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