Correlation Between Qingdao Foods and Fujian Oriental
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By analyzing existing cross correlation between Qingdao Foods Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Qingdao Foods and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Fujian Oriental.
Diversification Opportunities for Qingdao Foods and Fujian Oriental
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Fujian is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Fujian Oriental go up and down completely randomly.
Pair Corralation between Qingdao Foods and Fujian Oriental
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.6 times more return on investment than Fujian Oriental. However, Qingdao Foods Co is 1.66 times less risky than Fujian Oriental. It trades about 0.05 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.02 per unit of risk. If you would invest 1,300 in Qingdao Foods Co on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Qingdao Foods Co or generate 13.69% 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. Fujian Oriental Silver
Performance |
| Timeline |
| Qingdao Foods |
| Fujian Oriental Silver |
Qingdao Foods and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Fujian Oriental
The main advantage of trading using opposite Qingdao Foods and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Qingdao Foods vs. Tieling Newcity Investment | Qingdao Foods vs. Shaanxi Energy Investment | Qingdao Foods vs. Fujian Rongji Software | Qingdao Foods vs. Zhongrun Resources Investment |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China | Fujian Oriental vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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