Correlation Between Qingdao Foods and Runjian Communication
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By analyzing existing cross correlation between Qingdao Foods Co and Runjian Communication Co, you can compare the effects of market volatilities on Qingdao Foods and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Runjian Communication.
Diversification Opportunities for Qingdao Foods and Runjian Communication
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Runjian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Runjian Communication go up and down completely randomly.
Pair Corralation between Qingdao Foods and Runjian Communication
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.72 times more return on investment than Runjian Communication. However, Qingdao Foods Co is 1.38 times less risky than Runjian Communication. It trades about 0.01 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.0 per unit of risk. If you would invest 1,487 in Qingdao Foods Co on September 26, 2024 and sell it today you would lose (84.00) from holding Qingdao Foods Co or give up 5.65% 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. Runjian Communication Co
Performance |
| Timeline |
| Qingdao Foods |
| Runjian Communication |
Qingdao Foods and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Runjian Communication
The main advantage of trading using opposite Qingdao Foods and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Qingdao Foods vs. Ming Yang Smart | Qingdao Foods vs. 159681 | Qingdao Foods vs. 159005 | Qingdao Foods vs. Loctek Ergonomic Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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