Correlation Between Qingdao Foods and Yankershop Food
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By analyzing existing cross correlation between Qingdao Foods Co and Yankershop Food Co, you can compare the effects of market volatilities on Qingdao Foods and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Yankershop Food.
Diversification Opportunities for Qingdao Foods and Yankershop Food
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qingdao and Yankershop is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Yankershop Food go up and down completely randomly.
Pair Corralation between Qingdao Foods and Yankershop Food
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.78 times more return on investment than Yankershop Food. However, Qingdao Foods Co is 1.28 times less risky than Yankershop Food. It trades about -0.13 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.42 per unit of risk. If you would invest 1,387 in Qingdao Foods Co on November 3, 2024 and sell it today you would lose (62.00) from holding Qingdao Foods Co or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Yankershop Food Co
Performance |
| Timeline |
| Qingdao Foods |
| Yankershop Food |
Qingdao Foods and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Yankershop Food
The main advantage of trading using opposite Qingdao Foods and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Qingdao Foods vs. China Longyuan Power | Qingdao Foods vs. PetroChina Co Ltd | Qingdao Foods vs. Guangxi Guiguan Electric | Qingdao Foods vs. Yantai North Andre |
| Yankershop Food vs. China Longyuan Power | Yankershop Food vs. PetroChina Co Ltd | Yankershop Food vs. Guangxi Guiguan Electric | Yankershop Food vs. Yantai North Andre |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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