Correlation Between Qingdao Foods and Tieling Newcity
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By analyzing existing cross correlation between Qingdao Foods Co and Tieling Newcity Investment, you can compare the effects of market volatilities on Qingdao Foods and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Tieling Newcity.
Diversification Opportunities for Qingdao Foods and Tieling Newcity
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Tieling is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Tieling Newcity go up and down completely randomly.
Pair Corralation between Qingdao Foods and Tieling Newcity
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.85 times more return on investment than Tieling Newcity. However, Qingdao Foods Co is 1.17 times less risky than Tieling Newcity. It trades about 0.01 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.0 per unit of risk. If you would invest 1,580 in Qingdao Foods Co on September 3, 2024 and sell it today you would lose (102.00) from holding Qingdao Foods Co or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Foods Co vs. Tieling Newcity Investment
Performance |
| Timeline |
| Qingdao Foods |
| Tieling Newcity Inve |
Qingdao Foods and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Tieling Newcity
The main advantage of trading using opposite Qingdao Foods and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Qingdao Foods vs. Tieling Newcity Investment | Qingdao Foods vs. Shaanxi Energy Investment | Qingdao Foods vs. Fujian Rongji Software | Qingdao Foods vs. Zhongrun Resources Investment |
| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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