Correlation Between Qingdao Foods and Changshu Ruite
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By analyzing existing cross correlation between Qingdao Foods Co and Changshu Ruite Electric, you can compare the effects of market volatilities on Qingdao Foods and Changshu Ruite 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 Changshu Ruite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Changshu Ruite.
Diversification Opportunities for Qingdao Foods and Changshu Ruite
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Changshu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Changshu Ruite Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Ruite Electric 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 Changshu Ruite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Ruite Electric has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Changshu Ruite go up and down completely randomly.
Pair Corralation between Qingdao Foods and Changshu Ruite
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.07 times more return on investment than Changshu Ruite. However, Qingdao Foods is 1.07 times more volatile than Changshu Ruite Electric. It trades about 0.18 of its potential returns per unit of risk. Changshu Ruite Electric is currently generating about 0.1 per unit of risk. If you would invest 1,459 in Qingdao Foods Co on September 13, 2024 and sell it today you would earn a total of 136.00 from holding Qingdao Foods Co or generate 9.32% 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. Changshu Ruite Electric
Performance |
| Timeline |
| Qingdao Foods |
| Changshu Ruite Electric |
Qingdao Foods and Changshu Ruite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Changshu Ruite
The main advantage of trading using opposite Qingdao Foods and Changshu Ruite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Changshu Ruite 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 Changshu Ruite will offset losses from the drop in Changshu Ruite's long position.| Qingdao Foods vs. Zhejiang Xiantong RubberPlastic | Qingdao Foods vs. King Strong New Material | Qingdao Foods vs. Cangzhou Mingzhu Plastic | Qingdao Foods vs. Tonghua Grape Wine |
| Changshu Ruite vs. Industrial and Commercial | Changshu Ruite vs. Agricultural Bank of | Changshu Ruite vs. China Construction Bank | Changshu Ruite vs. Bank of China |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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