Correlation Between Qingdao Foods and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Qingdao Foods Co and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Qingdao Foods and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Fiberhome Telecommunicatio.
Diversification Opportunities for Qingdao Foods and Fiberhome Telecommunicatio
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Fiberhome is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Qingdao Foods and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 7.8 times less return on investment than Fiberhome Telecommunicatio. But when comparing it to its historical volatility, Qingdao Foods Co is 1.18 times less risky than Fiberhome Telecommunicatio. It trades about 0.01 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,336 in Fiberhome Telecommunication Technologies on September 26, 2024 and sell it today you would earn a total of 572.00 from holding Fiberhome Telecommunication Technologies or generate 42.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Qingdao Foods |
| Fiberhome Telecommunicatio |
Qingdao Foods and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Fiberhome Telecommunicatio
The main advantage of trading using opposite Qingdao Foods and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Qingdao Foods vs. Ming Yang Smart | Qingdao Foods vs. 159681 | Qingdao Foods vs. 159005 | Qingdao Foods vs. Loctek Ergonomic Technology |
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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