Correlation Between Qingdao Foods and CSG Holding
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By analyzing existing cross correlation between Qingdao Foods Co and CSG Holding Co, you can compare the effects of market volatilities on Qingdao Foods and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and CSG Holding.
Diversification Opportunities for Qingdao Foods and CSG Holding
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Qingdao and CSG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and CSG Holding go up and down completely randomly.
Pair Corralation between Qingdao Foods and CSG Holding
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.76 times more return on investment than CSG Holding. However, Qingdao Foods Co is 1.31 times less risky than CSG Holding. It trades about -0.13 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.28 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. CSG Holding Co
Performance |
| Timeline |
| Qingdao Foods |
| CSG Holding |
Qingdao Foods and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and CSG Holding
The main advantage of trading using opposite Qingdao Foods and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding'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 |
| CSG Holding vs. Zijin Mining Group | CSG Holding vs. Wanhua Chemical Group | CSG Holding vs. Baoshan Iron Steel | CSG Holding vs. Shandong Gold Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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