Correlation Between Fujian Rongji and Qingdao Foods
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By analyzing existing cross correlation between Fujian Rongji Software and Qingdao Foods Co, you can compare the effects of market volatilities on Fujian Rongji 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 Fujian Rongji with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Qingdao Foods.
Diversification Opportunities for Fujian Rongji and Qingdao Foods
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Fujian Rongji 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 Fujian Rongji Software 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 Fujian Rongji i.e., Fujian Rongji and Qingdao Foods go up and down completely randomly.
Pair Corralation between Fujian Rongji and Qingdao Foods
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 1.39 times more return on investment than Qingdao Foods. However, Fujian Rongji is 1.39 times more volatile than Qingdao Foods Co. It trades about 0.19 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.16 per unit of risk. If you would invest 438.00 in Fujian Rongji Software on September 3, 2024 and sell it today you would earn a total of 230.00 from holding Fujian Rongji Software or generate 52.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Rongji Software vs. Qingdao Foods Co
Performance |
| Timeline |
| Fujian Rongji Software |
| Qingdao Foods |
Fujian Rongji and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Qingdao Foods
The main advantage of trading using opposite Fujian Rongji and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji 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.| Fujian Rongji vs. Vanfund Urban Investment | Fujian Rongji vs. Xiandai Investment Co | Fujian Rongji vs. Shenzhen Centralcon Investment | Fujian Rongji vs. Cultural Investment Holdings |
| Qingdao Foods vs. Tieling Newcity Investment | Qingdao Foods vs. Shaanxi Energy Investment | Qingdao Foods vs. Fujian Rongji Software | Qingdao Foods vs. Zhongrun Resources Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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