Correlation Between Qingdao Foods and Jiangxi Ganfeng
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By analyzing existing cross correlation between Qingdao Foods Co and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Qingdao Foods and Jiangxi Ganfeng 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 Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Jiangxi Ganfeng.
Diversification Opportunities for Qingdao Foods and Jiangxi Ganfeng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Jiangxi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Qingdao Foods and Jiangxi Ganfeng
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.82 times more return on investment than Jiangxi Ganfeng. However, Qingdao Foods Co is 1.22 times less risky than Jiangxi Ganfeng. It trades about 0.02 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.03 per unit of risk. If you would invest 1,514 in Qingdao Foods Co on September 14, 2024 and sell it today you would earn a total of 165.00 from holding Qingdao Foods Co or generate 10.9% 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. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Qingdao Foods |
| Jiangxi Ganfeng Lithium |
Qingdao Foods and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Jiangxi Ganfeng
The main advantage of trading using opposite Qingdao Foods and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.| Qingdao Foods vs. ButOne Information Corp | Qingdao Foods vs. Cultural Investment Holdings | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Emdoor Information Co |
| Jiangxi Ganfeng vs. Shanghai Ziyan Foods | Jiangxi Ganfeng vs. Linewell Software Co | Jiangxi Ganfeng vs. Qingdao Foods Co | Jiangxi Ganfeng vs. Chahua Modern Housewares |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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