Correlation Between Qingdao Foods and Zhejiang Yayi
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By analyzing existing cross correlation between Qingdao Foods Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Qingdao Foods and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Zhejiang Yayi.
Diversification Opportunities for Qingdao Foods and Zhejiang Yayi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Qingdao Foods and Zhejiang Yayi
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.21 times more return on investment than Zhejiang Yayi. However, Qingdao Foods is 1.21 times more volatile than Zhejiang Yayi Metal. It trades about 0.18 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.07 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Qingdao Foods |
| Zhejiang Yayi Metal |
Qingdao Foods and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Zhejiang Yayi
The main advantage of trading using opposite Qingdao Foods and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. China Longyuan Power | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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