Correlation Between Qingdao Foods and Northern United
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By analyzing existing cross correlation between Qingdao Foods Co and Northern United Publishing, you can compare the effects of market volatilities on Qingdao Foods and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Northern United.
Diversification Opportunities for Qingdao Foods and Northern United
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Northern is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Northern United go up and down completely randomly.
Pair Corralation between Qingdao Foods and Northern United
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 1.28 times less risky than Northern United. The stock trades about -0.14 of its potential returns per unit of risk. The Northern United Publishing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 649.00 in Northern United Publishing on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Northern United Publishing or generate 0.46% 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. Northern United Publishing
Performance |
Timeline |
Qingdao Foods |
Northern United Publ |
Qingdao Foods and Northern United Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qingdao Foods and Northern United
The main advantage of trading using opposite Qingdao Foods and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.Qingdao Foods vs. Youyou Foods Co | ||
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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