Correlation Between China Asset and Qinghaihuading Industrial
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By analyzing existing cross correlation between China Asset Management and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Qinghaihuading Industrial.
Diversification Opportunities for China Asset and Qinghaihuading Industrial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Qinghaihuading is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between China Asset and Qinghaihuading Industrial
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.23 times more return on investment than Qinghaihuading Industrial. However, China Asset Management is 4.41 times less risky than Qinghaihuading Industrial. It trades about 0.42 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 315.00 in China Asset Management on September 25, 2024 and sell it today you would earn a total of 38.00 from holding China Asset Management or generate 12.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
China Asset Management vs. Qinghaihuading Industrial Co
Performance |
Timeline |
China Asset Management |
Qinghaihuading Industrial |
China Asset and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Asset and Qinghaihuading Industrial
The main advantage of trading using opposite China Asset and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.China Asset vs. Qumei Furniture Group | China Asset vs. Vohringer Home Technology | China Asset vs. Xilinmen Furniture Co | China Asset vs. Kuang Chi Technologies |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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