Correlation Between Qingdao Foods and Chengtun Mining
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By analyzing existing cross correlation between Qingdao Foods Co and Chengtun Mining Group, you can compare the effects of market volatilities on Qingdao Foods and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Chengtun Mining.
Diversification Opportunities for Qingdao Foods and Chengtun Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Chengtun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Chengtun Mining go up and down completely randomly.
Pair Corralation between Qingdao Foods and Chengtun Mining
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.32 times more return on investment than Chengtun Mining. However, Qingdao Foods is 1.32 times more volatile than Chengtun Mining Group. It trades about 0.18 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.04 per unit of risk. If you would invest 1,459 in Qingdao Foods Co on September 13, 2024 and sell it today you would earn a total of 136.00 from holding Qingdao Foods Co or generate 9.32% 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. Chengtun Mining Group
Performance |
| Timeline |
| Qingdao Foods |
| Chengtun Mining Group |
Qingdao Foods and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Chengtun Mining
The main advantage of trading using opposite Qingdao Foods and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Qingdao Foods vs. Zhejiang Xiantong RubberPlastic | Qingdao Foods vs. King Strong New Material | Qingdao Foods vs. Cangzhou Mingzhu Plastic | Qingdao Foods vs. Tonghua Grape Wine |
| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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