Correlation Between Qingdao Foods and China Vanke
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By analyzing existing cross correlation between Qingdao Foods Co and China Vanke Co, you can compare the effects of market volatilities on Qingdao Foods and China Vanke 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 Foods with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and China Vanke.
Diversification Opportunities for Qingdao Foods and China Vanke
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qingdao and China is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Qingdao Foods 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 Foods Co are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and China Vanke go up and down completely randomly.
Pair Corralation between Qingdao Foods and China Vanke
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.71 times more return on investment than China Vanke. However, Qingdao Foods is 1.71 times more volatile than China Vanke Co. It trades about -0.23 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.55 per unit of risk. If you would invest 1,547 in Qingdao Foods Co on October 17, 2024 and sell it today you would lose (197.00) from holding Qingdao Foods Co or give up 12.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. China Vanke Co
Performance |
| Timeline |
| Qingdao Foods |
| China Vanke |
Qingdao Foods and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and China Vanke
The main advantage of trading using opposite Qingdao Foods and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Qingdao Foods vs. Digiwin Software Co | Qingdao Foods vs. Keeson Technology Corp | Qingdao Foods vs. Olympic Circuit Technology | Qingdao Foods vs. Tianjin Ruixin Technology |
| China Vanke vs. Qingdao Foods Co | China Vanke vs. Guangdong Wens Foodstuff | China Vanke vs. HaiXin Foods Co | China Vanke vs. China Building Material |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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