Correlation Between Shanghai Lingyun and Qingdao Citymedia
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Qingdao Citymedia Co, you can compare the effects of market volatilities on Shanghai Lingyun and Qingdao Citymedia 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 Shanghai Lingyun with a short position of Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Qingdao Citymedia.
Diversification Opportunities for Shanghai Lingyun and Qingdao Citymedia
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia and Shanghai Lingyun 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 Shanghai Lingyun Industries are associated (or correlated) with Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Qingdao Citymedia
Assuming the 90 days trading horizon Shanghai Lingyun is expected to generate 2.8 times less return on investment than Qingdao Citymedia. In addition to that, Shanghai Lingyun is 1.92 times more volatile than Qingdao Citymedia Co. It trades about 0.05 of its total potential returns per unit of risk. Qingdao Citymedia Co is currently generating about 0.27 per unit of volatility. If you would invest 697.00 in Qingdao Citymedia Co on September 3, 2024 and sell it today you would earn a total of 83.00 from holding Qingdao Citymedia Co or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. Qingdao Citymedia Co
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Qingdao Citymedia |
Shanghai Lingyun and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Qingdao Citymedia
The main advantage of trading using opposite Shanghai Lingyun and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, Qingdao Citymedia 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 Qingdao Citymedia will offset losses from the drop in Qingdao Citymedia's long position.| Shanghai Lingyun vs. Industrial and Commercial | Shanghai Lingyun vs. Agricultural Bank of | Shanghai Lingyun vs. China Construction Bank | Shanghai Lingyun vs. Bank of China |
| Qingdao Citymedia vs. Hubei Dinglong Chemical | Qingdao Citymedia vs. Shantou Wanshun Package | Qingdao Citymedia vs. Xiwang Foodstuffs Co | Qingdao Citymedia vs. Xiangtan Electrochemical Scientific |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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