Correlation Between Gan Yuan and Qingdao Foods
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By analyzing existing cross correlation between Gan Yuan Foods and Qingdao Foods Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Qingdao Foods.
Diversification Opportunities for Gan Yuan and Qingdao Foods
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Qingdao Foods go up and down completely randomly.
Pair Corralation between Gan Yuan and Qingdao Foods
Assuming the 90 days trading horizon Gan Yuan is expected to generate 2.14 times less return on investment than Qingdao Foods. But when comparing it to its historical volatility, Gan Yuan Foods is 1.47 times less risky than Qingdao Foods. It trades about 0.09 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,336 in Qingdao Foods Co on September 5, 2024 and sell it today you would earn a total of 121.00 from holding Qingdao Foods Co or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Qingdao Foods Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Qingdao Foods |
Gan Yuan and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Qingdao Foods
The main advantage of trading using opposite Gan Yuan and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Suzhou Mingzhi Technology | Gan Yuan vs. Guangzhou Haige Communications |
| Qingdao Foods vs. Gem Year Industrial Co | Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Huaxia Fund Management | Qingdao Foods vs. Qinghaihuading Industrial 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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