Correlation Between Qingdao Foods and Guangdong Shenglu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Foods Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Qingdao Foods and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Guangdong Shenglu.
Diversification Opportunities for Qingdao Foods and Guangdong Shenglu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Qingdao Foods and Guangdong Shenglu
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.77 times more return on investment than Guangdong Shenglu. However, Qingdao Foods Co is 1.3 times less risky than Guangdong Shenglu. It trades about 0.01 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 1,487 in Qingdao Foods Co on September 26, 2024 and sell it today you would lose (84.00) from holding Qingdao Foods Co or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Qingdao Foods |
| Guangdong Shenglu |
Qingdao Foods and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Guangdong Shenglu
The main advantage of trading using opposite Qingdao Foods and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Qingdao Foods vs. Ming Yang Smart | Qingdao Foods vs. 159681 | Qingdao Foods vs. 159005 | Qingdao Foods vs. Loctek Ergonomic Technology |
| Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |