Correlation Between Qingdao Foods and Invengo Information
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By analyzing existing cross correlation between Qingdao Foods Co and Invengo Information Technology, you can compare the effects of market volatilities on Qingdao Foods and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Invengo Information.
Diversification Opportunities for Qingdao Foods and Invengo Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Invengo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Invengo Information go up and down completely randomly.
Pair Corralation between Qingdao Foods and Invengo Information
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 10.58 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Qingdao Foods Co is 2.46 times less risky than Invengo Information. It trades about 0.02 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Invengo Information Technology on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Invengo Information Technology or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Invengo Information Technology
Performance |
| Timeline |
| Qingdao Foods |
| Invengo Information |
Qingdao Foods and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Invengo Information
The main advantage of trading using opposite Qingdao Foods and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Qingdao Foods vs. China Petroleum Chemical | Qingdao Foods vs. PetroChina Co Ltd | Qingdao Foods vs. China State Construction | Qingdao Foods vs. China Railway Group |
| Invengo Information vs. Gansu Jiu Steel | Invengo Information vs. Shandong Mining Machinery | Invengo Information vs. Aba Chemicals Corp | Invengo Information vs. BlueFocus Communication Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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