Correlation Between Qingdao Foods and Changchun BCHT
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By analyzing existing cross correlation between Qingdao Foods Co and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Qingdao Foods and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Changchun BCHT.
Diversification Opportunities for Qingdao Foods and Changchun BCHT
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qingdao and Changchun is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Changchun BCHT go up and down completely randomly.
Pair Corralation between Qingdao Foods and Changchun BCHT
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 1.32 times more return on investment than Changchun BCHT. However, Qingdao Foods is 1.32 times more volatile than Changchun BCHT Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 1,198 in Qingdao Foods Co on October 14, 2024 and sell it today you would earn a total of 83.00 from holding Qingdao Foods Co or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Qingdao Foods |
| Changchun BCHT Biote |
Qingdao Foods and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Changchun BCHT
The main advantage of trading using opposite Qingdao Foods and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Qingdao Foods vs. Chongqing Brewery Co | Qingdao Foods vs. China Aluminum International | Qingdao Foods vs. Shanghai Yanpu Metal | Qingdao Foods vs. Bomesc Offshore Engineering |
| Changchun BCHT vs. Qingdao Foods Co | Changchun BCHT vs. Aba Chemicals Corp | Changchun BCHT vs. State Grid InformationCommunication | Changchun BCHT vs. Dymatic Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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