Correlation Between Qingdao Foods and Hangzhou Prevail
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By analyzing existing cross correlation between Qingdao Foods Co and Hangzhou Prevail Optoelectronic, you can compare the effects of market volatilities on Qingdao Foods and Hangzhou Prevail 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 Hangzhou Prevail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Hangzhou Prevail.
Diversification Opportunities for Qingdao Foods and Hangzhou Prevail
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Hangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Hangzhou Prevail Optoelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Prevail Opt 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 Hangzhou Prevail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Prevail Opt has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Hangzhou Prevail go up and down completely randomly.
Pair Corralation between Qingdao Foods and Hangzhou Prevail
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.7 times more return on investment than Hangzhou Prevail. However, Qingdao Foods Co is 1.42 times less risky than Hangzhou Prevail. It trades about 0.09 of its potential returns per unit of risk. Hangzhou Prevail Optoelectronic is currently generating about 0.0 per unit of risk. If you would invest 1,319 in Qingdao Foods Co on September 5, 2024 and sell it today you would earn a total of 128.00 from holding Qingdao Foods Co or generate 9.7% 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. Hangzhou Prevail Optoelectroni
Performance |
| Timeline |
| Qingdao Foods |
| Hangzhou Prevail Opt |
Qingdao Foods and Hangzhou Prevail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Hangzhou Prevail
The main advantage of trading using opposite Qingdao Foods and Hangzhou Prevail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Hangzhou Prevail 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 Hangzhou Prevail will offset losses from the drop in Hangzhou Prevail's long position.| Qingdao Foods vs. Gem Year Industrial Co | Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Huaxia Fund Management | Qingdao Foods vs. Qinghaihuading Industrial Co |
| Hangzhou Prevail vs. Eastroc Beverage Group | Hangzhou Prevail vs. Qingdao Foods Co | Hangzhou Prevail vs. Gansu Yasheng Industrial | Hangzhou Prevail vs. Lonkey Industrial 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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