Correlation Between Qingdao Choho and Midea Group
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By analyzing existing cross correlation between Qingdao Choho Industrial and Midea Group Co, you can compare the effects of market volatilities on Qingdao Choho and Midea Group 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 Choho with a short position of Midea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Midea Group.
Diversification Opportunities for Qingdao Choho and Midea Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Midea is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Midea Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midea Group and Qingdao Choho 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 Choho Industrial are associated (or correlated) with Midea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midea Group has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Midea Group go up and down completely randomly.
Pair Corralation between Qingdao Choho and Midea Group
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 2.24 times more return on investment than Midea Group. However, Qingdao Choho is 2.24 times more volatile than Midea Group Co. It trades about 0.11 of its potential returns per unit of risk. Midea Group Co is currently generating about -0.02 per unit of risk. If you would invest 2,730 in Qingdao Choho Industrial on October 26, 2024 and sell it today you would earn a total of 500.00 from holding Qingdao Choho Industrial or generate 18.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qingdao Choho Industrial vs. Midea Group Co
Performance |
Timeline |
Qingdao Choho Industrial |
Midea Group |
Qingdao Choho and Midea Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qingdao Choho and Midea Group
The main advantage of trading using opposite Qingdao Choho and Midea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Midea Group 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 Midea Group will offset losses from the drop in Midea Group's long position.Qingdao Choho vs. Kweichow Moutai Co | Qingdao Choho vs. Jiangsu Pacific Quartz | Qingdao Choho vs. Shenzhen Transsion Holdings | Qingdao Choho vs. Beijing Roborock Technology |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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