Correlation Between Qingdao Foods and Tianjin Realty
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By analyzing existing cross correlation between Qingdao Foods Co and Tianjin Realty Development, you can compare the effects of market volatilities on Qingdao Foods and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Tianjin Realty.
Diversification Opportunities for Qingdao Foods and Tianjin Realty
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Tianjin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Tianjin Realty go up and down completely randomly.
Pair Corralation between Qingdao Foods and Tianjin Realty
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 3.59 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Qingdao Foods Co is 1.7 times less risky than Tianjin Realty. It trades about 0.01 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Tianjin Realty Development on October 11, 2024 and sell it today you would earn a total of 7.00 from holding Tianjin Realty Development or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Tianjin Realty Development
Performance |
| Timeline |
| Qingdao Foods |
| Tianjin Realty Devel |
Qingdao Foods and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Tianjin Realty
The main advantage of trading using opposite Qingdao Foods and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Qingdao Foods vs. Shandong Publishing Media | Qingdao Foods vs. Qtone Education Group | Qingdao Foods vs. Western Metal Materials | Qingdao Foods vs. GRIPM Advanced Materials |
| Tianjin Realty vs. Eastroc Beverage Group | Tianjin Realty vs. V V Food | Tianjin Realty vs. Servyou Software Group | Tianjin Realty vs. Qingdao Foods Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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