Correlation Between Qingdao Foods and Beijing Kaiwen
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By analyzing existing cross correlation between Qingdao Foods Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Qingdao Foods and Beijing Kaiwen 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 Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Beijing Kaiwen.
Diversification Opportunities for Qingdao Foods and Beijing Kaiwen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Beijing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Qingdao Foods and Beijing Kaiwen
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.65 times more return on investment than Beijing Kaiwen. However, Qingdao Foods Co is 1.54 times less risky than Beijing Kaiwen. It trades about -0.23 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.32 per unit of risk. If you would invest 1,547 in Qingdao Foods Co on October 17, 2024 and sell it today you would lose (197.00) from holding Qingdao Foods Co or give up 12.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Qingdao Foods |
| Beijing Kaiwen Education |
Qingdao Foods and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Beijing Kaiwen
The main advantage of trading using opposite Qingdao Foods and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Beijing Kaiwen 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 Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Qingdao Foods vs. Digiwin Software Co | Qingdao Foods vs. Keeson Technology Corp | Qingdao Foods vs. Olympic Circuit Technology | Qingdao Foods vs. Tianjin Ruixin Technology |
| Beijing Kaiwen vs. JuneYao Dairy Co | Beijing Kaiwen vs. Giantec Semiconductor Corp | Beijing Kaiwen vs. Qingdao Foods Co | Beijing Kaiwen vs. Guilin Seamild Foods |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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