Correlation Between Qingdao Foods and Xinke Material
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Foods Co and Xinke Material, you can compare the effects of market volatilities on Qingdao Foods and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Xinke Material.
Diversification Opportunities for Qingdao Foods and Xinke Material
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qingdao and Xinke is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Xinke Material go up and down completely randomly.
Pair Corralation between Qingdao Foods and Xinke Material
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Xinke Material. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 3.45 times less risky than Xinke Material. The stock trades about -0.03 of its potential returns per unit of risk. The Xinke Material is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Xinke Material on October 24, 2024 and sell it today you would earn a total of 10.00 from holding Xinke Material or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Xinke Material
Performance |
| Timeline |
| Qingdao Foods |
| Xinke Material |
Qingdao Foods and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Xinke Material
The main advantage of trading using opposite Qingdao Foods and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material's long position.| Qingdao Foods vs. Chongqing Sulian Plastic | Qingdao Foods vs. Hainan Airlines Co | Qingdao Foods vs. Ping An Insurance | Qingdao Foods vs. Guosheng Financial Holding |
| Xinke Material vs. Qingdao Foods Co | Xinke Material vs. Hefei Metalforming Mach | Xinke Material vs. Shenyang Huitian Thermal | Xinke Material vs. Eastroc Beverage Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |