Correlation Between Qingdao Foods and Xinjiang Tianrun
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By analyzing existing cross correlation between Qingdao Foods Co and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Qingdao Foods and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Xinjiang Tianrun.
Diversification Opportunities for Qingdao Foods and Xinjiang Tianrun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Qingdao Foods and Xinjiang Tianrun
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.06 times more return on investment than Xinjiang Tianrun. However, Qingdao Foods is 1.06 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.01 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 1,386 in Qingdao Foods Co on October 12, 2024 and sell it today you would lose (61.00) from holding Qingdao Foods Co or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Foods Co vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Qingdao Foods |
| Xinjiang Tianrun Dairy |
Qingdao Foods and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Xinjiang Tianrun
The main advantage of trading using opposite Qingdao Foods and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Qingdao Foods vs. Shenyang Chemical Industry | Qingdao Foods vs. Jilin Chemical Fibre | Qingdao Foods vs. Heilongjiang Publishing Media | Qingdao Foods vs. Hainan Airlines Co |
| Xinjiang Tianrun vs. Guangdong Jingyi Metal | Xinjiang Tianrun vs. Lonkey Industrial Co | Xinjiang Tianrun vs. Pengxin International Mining | Xinjiang Tianrun 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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