Correlation Between Qingdao Foods and Dow Jones
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By analyzing existing cross correlation between Qingdao Foods Co and Dow Jones Industrial, you can compare the effects of market volatilities on Qingdao Foods and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Dow Jones.
Diversification Opportunities for Qingdao Foods and Dow Jones
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Dow is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Qingdao Foods i.e., Qingdao Foods and Dow Jones go up and down completely randomly.
Pair Corralation between Qingdao Foods and Dow Jones
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 3.55 times more return on investment than Dow Jones. However, Qingdao Foods is 3.55 times more volatile than Dow Jones Industrial. It trades about 0.22 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of risk. If you would invest 1,244 in Qingdao Foods Co on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Qingdao Foods Co or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Dow Jones Industrial
Performance |
| Timeline |
Qingdao Foods and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Qingdao Foods Co
Pair trading matchups for Qingdao Foods
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Qingdao Foods and Dow Jones
The main advantage of trading using opposite Qingdao Foods and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Qingdao Foods vs. Lutian Machinery Co | Qingdao Foods vs. PetroChina Co Ltd | Qingdao Foods vs. Bank of China | Qingdao Foods vs. Gansu Jiu Steel |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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