Correlation Between Qingdao Foods and Beijing Bewinner
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By analyzing existing cross correlation between Qingdao Foods Co and Beijing Bewinner Communications, you can compare the effects of market volatilities on Qingdao Foods and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Beijing Bewinner.
Diversification Opportunities for Qingdao Foods and Beijing Bewinner
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Beijing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Qingdao Foods and Beijing Bewinner
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Beijing Bewinner. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 1.41 times less risky than Beijing Bewinner. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Bewinner Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Beijing Bewinner Communications on October 28, 2024 and sell it today you would earn a total of 49.00 from holding Beijing Bewinner Communications or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Qingdao Foods |
| Beijing Bewinner Com |
Qingdao Foods and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Beijing Bewinner
The main advantage of trading using opposite Qingdao Foods and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Qingdao Foods vs. Kweichow Moutai Co | Qingdao Foods vs. Contemporary Amperex Technology | Qingdao Foods vs. G bits Network Technology | Qingdao Foods vs. Beijing Roborock Technology |
| Beijing Bewinner vs. Linzhou Heavy Machinery | Beijing Bewinner vs. Hongrun Construction Group | Beijing Bewinner vs. Shanghai Construction Group | Beijing Bewinner vs. Soyea Technology Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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