Correlation Between Xizi Clean and Qingdao Citymedia
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By analyzing existing cross correlation between Xizi Clean Energy and Qingdao Citymedia Co, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Qingdao Citymedia.
Diversification Opportunities for Xizi Clean and Qingdao Citymedia
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Qingdao is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia and Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between Xizi Clean and Qingdao Citymedia
Assuming the 90 days trading horizon Xizi Clean is expected to generate 1.02 times less return on investment than Qingdao Citymedia. In addition to that, Xizi Clean is 1.14 times more volatile than Qingdao Citymedia Co. It trades about 0.15 of its total potential returns per unit of risk. Qingdao Citymedia Co is currently generating about 0.17 per unit of volatility. If you would invest 644.00 in Qingdao Citymedia Co on September 12, 2024 and sell it today you would earn a total of 174.00 from holding Qingdao Citymedia Co or generate 27.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xizi Clean Energy vs. Qingdao Citymedia Co
Performance |
Timeline |
Xizi Clean Energy |
Qingdao Citymedia |
Xizi Clean and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xizi Clean and Qingdao Citymedia
The main advantage of trading using opposite Xizi Clean and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Bank of China | Xizi Clean vs. PetroChina Co Ltd |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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