Correlation Between Qingdao Foods and Fujian Boss
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By analyzing existing cross correlation between Qingdao Foods Co and Fujian Boss Software, you can compare the effects of market volatilities on Qingdao Foods and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Fujian Boss.
Diversification Opportunities for Qingdao Foods and Fujian Boss
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Fujian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Fujian Boss go up and down completely randomly.
Pair Corralation between Qingdao Foods and Fujian Boss
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 1.7 times less return on investment than Fujian Boss. But when comparing it to its historical volatility, Qingdao Foods Co is 1.41 times less risky than Fujian Boss. It trades about 0.16 of its potential returns per unit of risk. Fujian Boss Software is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Fujian Boss Software on September 3, 2024 and sell it today you would earn a total of 661.00 from holding Fujian Boss Software or generate 56.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Fujian Boss Software
Performance |
| Timeline |
| Qingdao Foods |
| Fujian Boss Software |
Qingdao Foods and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Fujian Boss
The main advantage of trading using opposite Qingdao Foods and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Qingdao Foods vs. Tieling Newcity Investment | Qingdao Foods vs. Shaanxi Energy Investment | Qingdao Foods vs. Fujian Rongji Software | Qingdao Foods vs. Zhongrun Resources Investment |
| Fujian Boss vs. Qingdao Foods Co | Fujian Boss vs. Gan Yuan Foods | Fujian Boss vs. Xiamen Jihong Package | Fujian Boss vs. Beijing Sanyuan Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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