Correlation Between Shanghai Lingyun and Qinghaihuading Industrial
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Shanghai Lingyun and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Qinghaihuading Industrial.
Diversification Opportunities for Shanghai Lingyun and Qinghaihuading Industrial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Qinghaihuading is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Shanghai Lingyun i.e., Shanghai Lingyun and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Qinghaihuading Industrial
Assuming the 90 days trading horizon Shanghai Lingyun Industries is expected to generate 1.8 times more return on investment than Qinghaihuading Industrial. However, Shanghai Lingyun is 1.8 times more volatile than Qinghaihuading Industrial Co. It trades about 0.05 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.05 per unit of risk. If you would invest 38.00 in Shanghai Lingyun Industries on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Shanghai Lingyun Industries or generate 2.63% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Qinghaihuading Industrial |
Shanghai Lingyun and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Qinghaihuading Industrial
The main advantage of trading using opposite Shanghai Lingyun and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial'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 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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