Correlation Between Qingdao Foods and Gansu Jiu
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By analyzing existing cross correlation between Qingdao Foods Co and Gansu Jiu Steel, you can compare the effects of market volatilities on Qingdao Foods and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Gansu Jiu.
Diversification Opportunities for Qingdao Foods and Gansu Jiu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Gansu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Gansu Jiu go up and down completely randomly.
Pair Corralation between Qingdao Foods and Gansu Jiu
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.17 times more return on investment than Gansu Jiu. However, Qingdao Foods is 1.17 times more volatile than Gansu Jiu Steel. It trades about 0.0 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.01 per unit of risk. If you would invest 1,386 in Qingdao Foods Co on October 13, 2024 and sell it today you would lose (105.00) from holding Qingdao Foods Co or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Gansu Jiu Steel
Performance |
| Timeline |
| Qingdao Foods |
| Gansu Jiu Steel |
Qingdao Foods and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Gansu Jiu
The main advantage of trading using opposite Qingdao Foods and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Qingdao Foods vs. Shenzhen AV Display Co | Qingdao Foods vs. Anji Foodstuff Co | Qingdao Foods vs. Muyuan Foodstuff Co | Qingdao Foods vs. Anshan Senyuan Road |
| Gansu Jiu vs. Changchun BCHT Biotechnology | Gansu Jiu vs. Qingdao Foods Co | Gansu Jiu vs. Gan Yuan Foods | Gansu Jiu vs. Beijing Sanyuan Foods |
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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