Correlation Between Qingdao Foods and Hainan Shuangcheng
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By analyzing existing cross correlation between Qingdao Foods Co and Hainan Shuangcheng Pharmaceut, you can compare the effects of market volatilities on Qingdao Foods and Hainan Shuangcheng 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 Hainan Shuangcheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Hainan Shuangcheng.
Diversification Opportunities for Qingdao Foods and Hainan Shuangcheng
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Hainan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Hainan Shuangcheng Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Shuangcheng 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 Hainan Shuangcheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Shuangcheng has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Hainan Shuangcheng go up and down completely randomly.
Pair Corralation between Qingdao Foods and Hainan Shuangcheng
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Hainan Shuangcheng. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 3.82 times less risky than Hainan Shuangcheng. The stock trades about 0.0 of its potential returns per unit of risk. The Hainan Shuangcheng Pharmaceut is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Hainan Shuangcheng Pharmaceut on December 1, 2024 and sell it today you would earn a total of 73.00 from holding Hainan Shuangcheng Pharmaceut or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Qingdao Foods Co vs. Hainan Shuangcheng Pharmaceut
Performance |
| Timeline |
| Qingdao Foods |
| Hainan Shuangcheng |
Qingdao Foods and Hainan Shuangcheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Hainan Shuangcheng
The main advantage of trading using opposite Qingdao Foods and Hainan Shuangcheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Hainan Shuangcheng 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 Hainan Shuangcheng will offset losses from the drop in Hainan Shuangcheng's long position.| Qingdao Foods vs. Guosheng Financial Holding | Qingdao Foods vs. Spring Airlines Co | Qingdao Foods vs. Hainan Airlines Co | Qingdao Foods vs. China Eastern Airlines |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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