Correlation Between Qingdao Foods and Jinling Hotel
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By analyzing existing cross correlation between Qingdao Foods Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Qingdao Foods and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Jinling Hotel.
Diversification Opportunities for Qingdao Foods and Jinling Hotel
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Jinling is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Jinling Hotel go up and down completely randomly.
Pair Corralation between Qingdao Foods and Jinling Hotel
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.22 times more return on investment than Jinling Hotel. However, Qingdao Foods is 1.22 times more volatile than Jinling Hotel Corp. It trades about 0.18 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.21 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Jinling Hotel Corp
Performance |
| Timeline |
| Qingdao Foods |
| Jinling Hotel Corp |
Qingdao Foods and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Jinling Hotel
The main advantage of trading using opposite Qingdao Foods and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel'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 |
| Jinling Hotel vs. Qingdao Foods Co | Jinling Hotel vs. Hubei Geoway Investment | Jinling Hotel vs. Guangdong Wens Foodstuff | Jinling Hotel vs. Gan Yuan Foods |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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