Correlation Between Qingdao Foods and Loongson Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Foods Co and Loongson Technology Corp, you can compare the effects of market volatilities on Qingdao Foods and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Loongson Technology.
Diversification Opportunities for Qingdao Foods and Loongson Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Loongson is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Loongson Technology go up and down completely randomly.
Pair Corralation between Qingdao Foods and Loongson Technology
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.07 times more return on investment than Loongson Technology. However, Qingdao Foods is 1.07 times more volatile than Loongson Technology Corp. It trades about -0.01 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about -0.16 per unit of risk. If you would invest 1,358 in Qingdao Foods Co on October 26, 2024 and sell it today you would lose (35.00) from holding Qingdao Foods Co or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Loongson Technology Corp
Performance |
| Timeline |
| Qingdao Foods |
| Loongson Technology Corp |
Qingdao Foods and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Loongson Technology
The main advantage of trading using opposite Qingdao Foods and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology'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 |
| Loongson Technology vs. Qingdao Foods Co | Loongson Technology vs. Gan Yuan Foods | Loongson Technology vs. Fibocom Wireless | Loongson Technology vs. New Hope Dairy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |