Correlation Between Beijing HuaYuanYiTong and Qingdao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Qingdao Foods Co, you can compare the effects of market volatilities on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Qingdao Foods.
Diversification Opportunities for Beijing HuaYuanYiTong and Qingdao Foods
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Qingdao is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Qingdao Foods go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Qingdao Foods
Assuming the 90 days trading horizon Beijing HuaYuanYiTong is expected to generate 1.59 times less return on investment than Qingdao Foods. In addition to that, Beijing HuaYuanYiTong is 1.24 times more volatile than Qingdao Foods Co. It trades about 0.09 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.18 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 136.00 from holding Qingdao Foods Co or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Qingdao Foods Co
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Qingdao Foods |
Beijing HuaYuanYiTong and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Qingdao Foods
The main advantage of trading using opposite Beijing HuaYuanYiTong and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong 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.| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |