Correlation Between Qingdao Foods and Jiangsu Seagull
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By analyzing existing cross correlation between Qingdao Foods Co and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Qingdao Foods and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Jiangsu Seagull.
Diversification Opportunities for Qingdao Foods and Jiangsu Seagull
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Jiangsu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Qingdao Foods and Jiangsu Seagull
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 8.43 times less return on investment than Jiangsu Seagull. But when comparing it to its historical volatility, Qingdao Foods Co is 1.67 times less risky than Jiangsu Seagull. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Jiangsu Seagull Cooling on November 4, 2024 and sell it today you would earn a total of 100.00 from holding Jiangsu Seagull Cooling or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Qingdao Foods |
| Jiangsu Seagull Cooling |
Qingdao Foods and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Jiangsu Seagull
The main advantage of trading using opposite Qingdao Foods and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Ningbo Construction Co | Qingdao Foods vs. Shenzhen Zhongzhuang Construction | Qingdao Foods vs. Huasi Agricultural Development |
| Jiangsu Seagull vs. China Satellite Communications | Jiangsu Seagull vs. Beijing Bewinner Communications | Jiangsu Seagull vs. Servyou Software Group | Jiangsu Seagull vs. Guangzhou Haige Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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