Correlation Between Qingdao Foods and Chengdu Xingrong
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By analyzing existing cross correlation between Qingdao Foods Co and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Qingdao Foods and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Chengdu Xingrong.
Diversification Opportunities for Qingdao Foods and Chengdu Xingrong
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qingdao and Chengdu is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Qingdao Foods and Chengdu Xingrong
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Chengdu Xingrong. In addition to that, Qingdao Foods is 1.42 times more volatile than Chengdu Xingrong Investment. It trades about -0.08 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.04 per unit of volatility. If you would invest 725.00 in Chengdu Xingrong Investment on October 20, 2024 and sell it today you would lose (12.00) from holding Chengdu Xingrong Investment or give up 1.66% 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. Chengdu Xingrong Investment
Performance |
| Timeline |
| Qingdao Foods |
| Chengdu Xingrong Inv |
Qingdao Foods and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Chengdu Xingrong
The main advantage of trading using opposite Qingdao Foods and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Jonjee Hi tech Industrial | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Gem Year Industrial Co |
| Chengdu Xingrong vs. Innovative Medical Management | Chengdu Xingrong vs. Hengli Petrochemical Co | Chengdu Xingrong vs. APT Medical | Chengdu Xingrong vs. Qingdao Haier Biomedical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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