Correlation Between Xiamen Jihong and Qingdao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Jihong Package and Qingdao Foods Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Qingdao Foods.
Diversification Opportunities for Xiamen Jihong and Qingdao Foods
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Qingdao is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Qingdao Foods go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Qingdao Foods
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Qingdao Foods. In addition to that, Xiamen Jihong is 1.11 times more volatile than Qingdao Foods Co. It trades about -0.02 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.02 per unit of volatility. If you would invest 1,523 in Qingdao Foods Co on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Qingdao Foods Co or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Qingdao Foods Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Qingdao Foods |
Xiamen Jihong and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Qingdao Foods
The main advantage of trading using opposite Xiamen Jihong and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Zhengzhou Qianweiyangchu Food | Xiamen Jihong vs. Great Sun Foods Co | Xiamen Jihong vs. Shandong Iron and | Xiamen Jihong vs. Beijing Sanyuan Foods |
| Qingdao Foods vs. China Petroleum Chemical | Qingdao Foods vs. PetroChina Co Ltd | Qingdao Foods vs. China State Construction | Qingdao Foods vs. China Railway Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |