Correlation Between Qingdao Foods and Geron Co
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By analyzing existing cross correlation between Qingdao Foods Co and Geron Co, you can compare the effects of market volatilities on Qingdao Foods and Geron Co 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 Geron Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Geron Co.
Diversification Opportunities for Qingdao Foods and Geron Co
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Geron is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron Co 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 Geron Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron Co has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Geron Co go up and down completely randomly.
Pair Corralation between Qingdao Foods and Geron Co
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 1.97 times less return on investment than Geron Co. But when comparing it to its historical volatility, Qingdao Foods Co is 1.15 times less risky than Geron Co. It trades about 0.01 of its potential returns per unit of risk. Geron Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,414 in Geron Co on December 4, 2024 and sell it today you would earn a total of 180.00 from holding Geron Co or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Foods Co vs. Geron Co
Performance |
| Timeline |
| Qingdao Foods |
| Geron Co |
Qingdao Foods and Geron Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Geron Co
The main advantage of trading using opposite Qingdao Foods and Geron Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Geron Co 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 Geron Co will offset losses from the drop in Geron Co's long position.| Qingdao Foods vs. Guotai Epoint Software | Qingdao Foods vs. Linkage Software Co | Qingdao Foods vs. UE Furniture Co | Qingdao Foods vs. Fujian Boss Software |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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