Correlation Between Qingdao Foods and FSPG Hi
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By analyzing existing cross correlation between Qingdao Foods Co and FSPG Hi Tech Co, you can compare the effects of market volatilities on Qingdao Foods and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and FSPG Hi.
Diversification Opportunities for Qingdao Foods and FSPG Hi
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and FSPG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and FSPG Hi go up and down completely randomly.
Pair Corralation between Qingdao Foods and FSPG Hi
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 3.73 times less return on investment than FSPG Hi. But when comparing it to its historical volatility, Qingdao Foods Co is 1.33 times less risky than FSPG Hi. It trades about 0.04 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 375.00 in FSPG Hi Tech Co on October 13, 2024 and sell it today you would earn a total of 188.00 from holding FSPG Hi Tech Co or generate 50.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.3% |
| Values | Daily Returns |
Qingdao Foods Co vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Qingdao Foods |
| FSPG Hi Tech |
Qingdao Foods and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and FSPG Hi
The main advantage of trading using opposite Qingdao Foods and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Qingdao Foods vs. Shenyang Chemical Industry | Qingdao Foods vs. Jilin Chemical Fibre | Qingdao Foods vs. Heilongjiang Publishing Media | Qingdao Foods vs. Hainan Airlines Co |
| FSPG Hi vs. Qingdao Foods Co | FSPG Hi vs. Jinxiandai Information Industry | FSPG Hi vs. Emdoor Information Co | FSPG Hi vs. Longmaster Information Tech |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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