Correlation Between Qingdao Foods and Shanghai Ziyan
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By analyzing existing cross correlation between Qingdao Foods Co and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Qingdao Foods and Shanghai Ziyan 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 Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Shanghai Ziyan.
Diversification Opportunities for Qingdao Foods and Shanghai Ziyan
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Qingdao Foods and Shanghai Ziyan
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.45 times more return on investment than Shanghai Ziyan. However, Qingdao Foods Co is 2.22 times less risky than Shanghai Ziyan. It trades about -0.08 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.12 per unit of risk. If you would invest 1,373 in Qingdao Foods Co on October 26, 2024 and sell it today you would lose (48.00) from holding Qingdao Foods Co or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Qingdao Foods Co vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Qingdao Foods |
| Shanghai Ziyan Foods |
Qingdao Foods and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Shanghai Ziyan
The main advantage of trading using opposite Qingdao Foods and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Qingdao Foods vs. JCHX Mining Management | Qingdao Foods vs. Chenzhou Jingui Silver | Qingdao Foods vs. Tibet Huayu Mining | Qingdao Foods vs. China Everbright Bank |
| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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