Correlation Between Qingdao Foods and Great Sun
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By analyzing existing cross correlation between Qingdao Foods Co and Great Sun Foods Co, you can compare the effects of market volatilities on Qingdao Foods and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Great Sun.
Diversification Opportunities for Qingdao Foods and Great Sun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Great is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Great Sun go up and down completely randomly.
Pair Corralation between Qingdao Foods and Great Sun
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.95 times more return on investment than Great Sun. However, Qingdao Foods Co is 1.06 times less risky than Great Sun. It trades about 0.18 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.05 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Great Sun Foods Co
Performance |
| Timeline |
| Qingdao Foods |
| Great Sun Foods |
Qingdao Foods and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Great Sun
The main advantage of trading using opposite Qingdao Foods and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun'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 |
| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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