Correlation Between Qingdao Foods and HaiXin Foods
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By analyzing existing cross correlation between Qingdao Foods Co and HaiXin Foods Co, you can compare the effects of market volatilities on Qingdao Foods and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and HaiXin Foods.
Diversification Opportunities for Qingdao Foods and HaiXin Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and HaiXin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and HaiXin Foods go up and down completely randomly.
Pair Corralation between Qingdao Foods and HaiXin Foods
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 3.45 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Qingdao Foods Co is 1.5 times less risky than HaiXin Foods. It trades about 0.18 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 431.00 in HaiXin Foods Co on September 13, 2024 and sell it today you would earn a total of 159.00 from holding HaiXin Foods Co or generate 36.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. HaiXin Foods Co
Performance |
| Timeline |
| Qingdao Foods |
| HaiXin Foods |
Qingdao Foods and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and HaiXin Foods
The main advantage of trading using opposite Qingdao Foods and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Qingdao Foods vs. Zhejiang Xiantong RubberPlastic | Qingdao Foods vs. King Strong New Material | Qingdao Foods vs. Cangzhou Mingzhu Plastic | Qingdao Foods vs. Tonghua Grape Wine |
| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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