Correlation Between Qingdao Foods and Shanghai Pudong
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By analyzing existing cross correlation between Qingdao Foods Co and Shanghai Pudong Development, you can compare the effects of market volatilities on Qingdao Foods and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Shanghai Pudong.
Diversification Opportunities for Qingdao Foods and Shanghai Pudong
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Shanghai is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Qingdao Foods and Shanghai Pudong
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Shanghai Pudong. In addition to that, Qingdao Foods is 1.68 times more volatile than Shanghai Pudong Development. It trades about -0.08 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.27 per unit of volatility. If you would invest 953.00 in Shanghai Pudong Development on October 20, 2024 and sell it today you would earn a total of 74.00 from holding Shanghai Pudong Development or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Shanghai Pudong Development
Performance |
| Timeline |
| Qingdao Foods |
| Shanghai Pudong Deve |
Qingdao Foods and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Shanghai Pudong
The main advantage of trading using opposite Qingdao Foods and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Jonjee Hi tech Industrial | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Gem Year Industrial Co |
| Shanghai Pudong vs. Huatian Hotel Group | Shanghai Pudong vs. Anhui Gujing Distillery | Shanghai Pudong vs. Humanwell Healthcare Group | Shanghai Pudong vs. Easyhome New Retail |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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