Correlation Between Qingdao Foods and Weihai Guangwei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Foods Co and Weihai Guangwei Composites, you can compare the effects of market volatilities on Qingdao Foods and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Weihai Guangwei.
Diversification Opportunities for Qingdao Foods and Weihai Guangwei
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Weihai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Qingdao Foods and Weihai Guangwei
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.9 times more return on investment than Weihai Guangwei. However, Qingdao Foods Co is 1.11 times less risky than Weihai Guangwei. It trades about 0.02 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.0 per unit of risk. If you would invest 1,514 in Qingdao Foods Co on September 14, 2024 and sell it today you would earn a total of 165.00 from holding Qingdao Foods Co or generate 10.9% 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. Weihai Guangwei Composites
Performance |
| Timeline |
| Qingdao Foods |
| Weihai Guangwei Comp |
Qingdao Foods and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Weihai Guangwei
The main advantage of trading using opposite Qingdao Foods and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Qingdao Foods vs. ButOne Information Corp | Qingdao Foods vs. Cultural Investment Holdings | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Emdoor Information Co |
| Weihai Guangwei vs. Nanjing Putian Telecommunications | Weihai Guangwei vs. Beijing Sanyuan Foods | Weihai Guangwei vs. Shenzhen Kexin Communication | Weihai Guangwei vs. Qingdao Foods Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |