Correlation Between Qingdao Foods and Bus Online
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By analyzing existing cross correlation between Qingdao Foods Co and Bus Online Co, you can compare the effects of market volatilities on Qingdao Foods and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Bus Online.
Diversification Opportunities for Qingdao Foods and Bus Online
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Bus is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Bus Online go up and down completely randomly.
Pair Corralation between Qingdao Foods and Bus Online
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Bus Online. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 2.24 times less risky than Bus Online. The stock trades about -0.08 of its potential returns per unit of risk. The Bus Online Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 441.00 in Bus Online Co on October 26, 2024 and sell it today you would lose (16.00) from holding Bus Online Co or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Qingdao Foods Co vs. Bus Online Co
Performance |
| Timeline |
| Qingdao Foods |
| Bus Online |
Qingdao Foods and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Bus Online
The main advantage of trading using opposite Qingdao Foods and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Qingdao Foods vs. JCHX Mining Management | Qingdao Foods vs. Chenzhou Jingui Silver | Qingdao Foods vs. Tibet Huayu Mining | Qingdao Foods vs. China Everbright Bank |
| Bus Online vs. Miracll Chemicals Co | Bus Online vs. Marssenger Kitchenware Co | Bus Online vs. Uroica Mining Safety | Bus Online vs. Anhui Tongguan Copper |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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