Correlation Between Qingdao Foods and Shanghai Jinfeng
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By analyzing existing cross correlation between Qingdao Foods Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Qingdao Foods and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Shanghai Jinfeng.
Diversification Opportunities for Qingdao Foods and Shanghai Jinfeng
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Qingdao Foods and Shanghai Jinfeng
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.87 times more return on investment than Shanghai Jinfeng. However, Qingdao Foods Co is 1.15 times less risky than Shanghai Jinfeng. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 1,241 in Qingdao Foods Co on October 12, 2024 and sell it today you would earn a total of 84.00 from holding Qingdao Foods Co or generate 6.77% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Qingdao Foods |
| Shanghai Jinfeng Wine |
Qingdao Foods and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Shanghai Jinfeng
The main advantage of trading using opposite Qingdao Foods and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Qingdao Foods vs. Shandong Hongchuang Aluminum | Qingdao Foods vs. Anhui Transport Consulting | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Aluminum Corp of |
| Shanghai Jinfeng vs. Shantou Wanshun Package | Shanghai Jinfeng vs. Qingdao Foods Co | Shanghai Jinfeng vs. Olympic Circuit Technology | Shanghai Jinfeng vs. Changchun UP Optotech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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