Correlation Between Cangzhou Mingzhu and Qingdao Foods
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Qingdao Foods Co, you can compare the effects of market volatilities on Cangzhou Mingzhu and Qingdao Foods 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 Cangzhou Mingzhu with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Qingdao Foods.
Diversification Opportunities for Cangzhou Mingzhu and Qingdao Foods
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cangzhou and Qingdao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Qingdao Foods go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Qingdao Foods
Assuming the 90 days trading horizon Cangzhou Mingzhu is expected to generate 1.63 times less return on investment than Qingdao Foods. In addition to that, Cangzhou Mingzhu is 1.19 times more volatile than Qingdao Foods Co. It trades about 0.13 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.25 per unit of volatility. If you would invest 1,459 in Qingdao Foods Co on September 13, 2024 and sell it today you would earn a total of 220.00 from holding Qingdao Foods Co or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Qingdao Foods Co
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Qingdao Foods |
Cangzhou Mingzhu and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Qingdao Foods
The main advantage of trading using opposite Cangzhou Mingzhu and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Glodon Software Co | Cangzhou Mingzhu vs. CITIC Securities Co | Cangzhou Mingzhu vs. Shanghai Suochen Information |
| Qingdao Foods vs. ButOne Information Corp | Qingdao Foods vs. Cultural Investment Holdings | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Emdoor Information 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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