Correlation Between Qingdao Foods and Fibocom Wireless
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By analyzing existing cross correlation between Qingdao Foods Co and Fibocom Wireless, you can compare the effects of market volatilities on Qingdao Foods and Fibocom Wireless 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 Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Fibocom Wireless.
Diversification Opportunities for Qingdao Foods and Fibocom Wireless
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Fibocom is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless 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 Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Qingdao Foods and Fibocom Wireless
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 2.65 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Qingdao Foods Co is 1.6 times less risky than Fibocom Wireless. It trades about 0.12 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Fibocom Wireless on October 18, 2024 and sell it today you would earn a total of 1,003 from holding Fibocom Wireless or generate 98.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Fibocom Wireless
Performance |
| Timeline |
| Qingdao Foods |
| Fibocom Wireless |
Qingdao Foods and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Fibocom Wireless
The main advantage of trading using opposite Qingdao Foods and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Qingdao Foods vs. Digiwin Software Co | Qingdao Foods vs. Keeson Technology Corp | Qingdao Foods vs. Olympic Circuit Technology | Qingdao Foods vs. Tianjin Ruixin Technology |
| Fibocom Wireless vs. Chongqing Brewery Co | Fibocom Wireless vs. Qingdao Foods Co | Fibocom Wireless vs. SSAW Hotels Resorts | Fibocom Wireless vs. Zhejiang Kingland Pipeline |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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