Correlation Between Qingdao Foods and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Foods Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Qingdao Foods and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Sichuan Jinshi.
Diversification Opportunities for Qingdao Foods and Sichuan Jinshi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Qingdao Foods and Sichuan Jinshi
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 1.12 times less risky than Sichuan Jinshi. The stock trades about -0.41 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 747.00 in Sichuan Jinshi Technology on October 14, 2024 and sell it today you would lose (82.00) from holding Sichuan Jinshi Technology or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Qingdao Foods |
| Sichuan Jinshi Technology |
Qingdao Foods and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Sichuan Jinshi
The main advantage of trading using opposite Qingdao Foods and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Qingdao Foods vs. Chongqing Brewery Co | Qingdao Foods vs. China Aluminum International | Qingdao Foods vs. Shanghai Yanpu Metal | Qingdao Foods vs. Bomesc Offshore Engineering |
| Sichuan Jinshi vs. Jinxiandai Information Industry | Sichuan Jinshi vs. Sublime China Information | Sichuan Jinshi vs. Digital China Information | Sichuan Jinshi vs. Soochow Suzhou Industrial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |