Correlation Between Qingdao Foods and Wanda Cinema
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By analyzing existing cross correlation between Qingdao Foods Co and Wanda Cinema Line, you can compare the effects of market volatilities on Qingdao Foods and Wanda Cinema 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 Wanda Cinema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Wanda Cinema.
Diversification Opportunities for Qingdao Foods and Wanda Cinema
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Wanda is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Wanda Cinema Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanda Cinema Line 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 Wanda Cinema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanda Cinema Line has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Wanda Cinema go up and down completely randomly.
Pair Corralation between Qingdao Foods and Wanda Cinema
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.87 times more return on investment than Wanda Cinema. However, Qingdao Foods Co is 1.15 times less risky than Wanda Cinema. It trades about 0.01 of its potential returns per unit of risk. Wanda Cinema Line is currently generating about 0.0 per unit of risk. If you would invest 1,265 in Qingdao Foods Co on December 4, 2024 and sell it today you would earn a total of 23.00 from holding Qingdao Foods Co or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Qingdao Foods Co vs. Wanda Cinema Line
Performance |
| Timeline |
| Qingdao Foods |
| Wanda Cinema Line |
Qingdao Foods and Wanda Cinema Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Wanda Cinema
The main advantage of trading using opposite Qingdao Foods and Wanda Cinema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Wanda Cinema 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 Wanda Cinema will offset losses from the drop in Wanda Cinema'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 |
| Wanda Cinema vs. Guangdong Jingyi Metal | Wanda Cinema vs. Rongcheer Industrial Technology | Wanda Cinema vs. Chengtun Mining Group | Wanda Cinema vs. Rising Nonferrous Metals |
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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