Correlation Between Qingdao Foods and Sinofibers Technology
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By analyzing existing cross correlation between Qingdao Foods Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Qingdao Foods and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Sinofibers Technology.
Diversification Opportunities for Qingdao Foods and Sinofibers Technology
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Qingdao and Sinofibers is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Qingdao Foods and Sinofibers Technology
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Sinofibers Technology. In addition to that, Qingdao Foods is 1.19 times more volatile than Sinofibers Technology Co. It trades about -0.29 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.05 per unit of volatility. If you would invest 2,762 in Sinofibers Technology Co on October 12, 2024 and sell it today you would lose (82.00) from holding Sinofibers Technology Co or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Qingdao Foods |
| Sinofibers Technology |
Qingdao Foods and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Sinofibers Technology
The main advantage of trading using opposite Qingdao Foods and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Qingdao Foods vs. Shandong Hongchuang Aluminum | Qingdao Foods vs. Anhui Transport Consulting | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Aluminum Corp of |
| Sinofibers Technology vs. V V Food | Sinofibers Technology vs. Guangdong Silvere Sci | Sinofibers Technology vs. Qingdao Foods Co | Sinofibers Technology vs. New Hope Dairy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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