Correlation Between Qingdao Foods and Ningbo Tech
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By analyzing existing cross correlation between Qingdao Foods Co and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Qingdao Foods and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Ningbo Tech.
Diversification Opportunities for Qingdao Foods and Ningbo Tech
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Ningbo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Ningbo Tech go up and down completely randomly.
Pair Corralation between Qingdao Foods and Ningbo Tech
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Ningbo Tech. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 1.3 times less risky than Ningbo Tech. The stock trades about -0.14 of its potential returns per unit of risk. The Ningbo Tech Bank Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Ningbo Tech Bank Co on October 29, 2024 and sell it today you would earn a total of 20.00 from holding Ningbo Tech Bank Co or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Qingdao Foods |
| Ningbo Tech Bank |
Qingdao Foods and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Ningbo Tech
The main advantage of trading using opposite Qingdao Foods and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Qingdao Foods vs. Allwin Telecommunication Co | Qingdao Foods vs. Tongyu Communication | Qingdao Foods vs. Guangdong Liantai Environmental | Qingdao Foods vs. Fujian Nanwang Environment |
| Ningbo Tech vs. Yindu Kitchen Equipment | Ningbo Tech vs. Sichuan Hebang Biotechnology | Ningbo Tech vs. Fiberhome Telecommunication Technologies | Ningbo Tech vs. Beijing Kingsoft Office |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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