Correlation Between Qingdao Foods and Chenzhou Jingui
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By analyzing existing cross correlation between Qingdao Foods Co and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Qingdao Foods and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Chenzhou Jingui.
Diversification Opportunities for Qingdao Foods and Chenzhou Jingui
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Chenzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Qingdao Foods and Chenzhou Jingui
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Chenzhou Jingui. In addition to that, Qingdao Foods is 1.34 times more volatile than Chenzhou Jingui Silver. It trades about -0.37 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about -0.34 per unit of volatility. If you would invest 390.00 in Chenzhou Jingui Silver on October 16, 2024 and sell it today you would lose (47.00) from holding Chenzhou Jingui Silver or give up 12.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Qingdao Foods |
| Chenzhou Jingui Silver |
Qingdao Foods and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Chenzhou Jingui
The main advantage of trading using opposite Qingdao Foods and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Qingdao Foods vs. Great Sun Foods Co | Qingdao Foods vs. Jiangsu Yueda Investment | Qingdao Foods vs. Cansino Biologics | Qingdao Foods vs. Xiandai Investment Co |
| Chenzhou Jingui vs. Guangdong Qunxing Toys | Chenzhou Jingui vs. Lecron Energy Saving | Chenzhou Jingui vs. Unisplendour Corp | Chenzhou Jingui vs. Ping An Insurance |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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