Correlation Between Qingdao Foods and Zhangjiagang Elegant
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By analyzing existing cross correlation between Qingdao Foods Co and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Qingdao Foods and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Zhangjiagang Elegant.
Diversification Opportunities for Qingdao Foods and Zhangjiagang Elegant
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Zhangjiagang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Qingdao Foods and Zhangjiagang Elegant
Assuming the 90 days trading horizon Qingdao Foods Co is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Foods Co is 1.19 times less risky than Zhangjiagang Elegant. The stock trades about -0.03 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 939.00 in Zhangjiagang Elegant Home on October 23, 2024 and sell it today you would earn a total of 35.00 from holding Zhangjiagang Elegant Home or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Qingdao Foods |
| Zhangjiagang Elegant Home |
Qingdao Foods and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Zhangjiagang Elegant
The main advantage of trading using opposite Qingdao Foods and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Qingdao Foods vs. Chongqing Brewery Co | Qingdao Foods vs. Hunan Tyen Machinery | Qingdao Foods vs. Huasi Agricultural Development | Qingdao Foods vs. Ningbo Construction 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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