Correlation Between Qingdao Hi and Fujian Boss
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Fujian Boss Software, you can compare the effects of market volatilities on Qingdao Hi and Fujian Boss 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 Hi with a short position of Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi and Fujian Boss.
Diversification Opportunities for Qingdao Hi and Fujian Boss
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Fujian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software and Qingdao Hi 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 Hi Tech Moulds are associated (or correlated) with Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Qingdao Hi i.e., Qingdao Hi and Fujian Boss go up and down completely randomly.
Pair Corralation between Qingdao Hi and Fujian Boss
Assuming the 90 days trading horizon Qingdao Hi is expected to generate 1.17 times less return on investment than Fujian Boss. But when comparing it to its historical volatility, Qingdao Hi Tech Moulds is 1.13 times less risky than Fujian Boss. It trades about 0.17 of its potential returns per unit of risk. Fujian Boss Software is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Fujian Boss Software on September 12, 2024 and sell it today you would earn a total of 595.00 from holding Fujian Boss Software or generate 50.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Qingdao Hi Tech Moulds vs. Fujian Boss Software
Performance |
Timeline |
Qingdao Hi Tech |
Fujian Boss Software |
Qingdao Hi and Fujian Boss Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qingdao Hi and Fujian Boss
The main advantage of trading using opposite Qingdao Hi and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
Fujian Boss vs. Qingdao Hi Tech Moulds | Fujian Boss vs. China World Trade | Fujian Boss vs. Jiangxi Hengda Hi Tech | Fujian Boss vs. Jinhe Biotechnology Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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