Correlation Between Invengo Information and Qingdao Foods
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By analyzing existing cross correlation between Invengo Information Technology and Qingdao Foods Co, you can compare the effects of market volatilities on Invengo Information 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 Invengo Information with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and Qingdao Foods.
Diversification Opportunities for Invengo Information and Qingdao Foods
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invengo and Qingdao is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Invengo Information 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 Invengo Information Technology 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 Invengo Information i.e., Invengo Information and Qingdao Foods go up and down completely randomly.
Pair Corralation between Invengo Information and Qingdao Foods
Assuming the 90 days trading horizon Invengo Information Technology is expected to generate 1.4 times more return on investment than Qingdao Foods. However, Invengo Information is 1.4 times more volatile than Qingdao Foods Co. It trades about 0.21 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.21 per unit of risk. If you would invest 394.00 in Invengo Information Technology on September 12, 2024 and sell it today you would earn a total of 259.00 from holding Invengo Information Technology or generate 65.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invengo Information Technology vs. Qingdao Foods Co
Performance |
| Timeline |
| Invengo Information |
| Qingdao Foods |
Invengo Information and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and Qingdao Foods
The main advantage of trading using opposite Invengo Information and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information 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.| Invengo Information vs. Industrial and Commercial | Invengo Information vs. Agricultural Bank of | Invengo Information vs. China Construction Bank | Invengo Information vs. Bank of China |
| 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 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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