Correlation Between Qingdao Choho and Xiwang Foodstuffs
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By analyzing existing cross correlation between Qingdao Choho Industrial and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Qingdao Choho and Xiwang Foodstuffs 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 Qingdao Choho with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Xiwang Foodstuffs.
Diversification Opportunities for Qingdao Choho and Xiwang Foodstuffs
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Xiwang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Qingdao Choho 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 Qingdao Choho Industrial are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Qingdao Choho and Xiwang Foodstuffs
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 0.71 times more return on investment than Xiwang Foodstuffs. However, Qingdao Choho Industrial is 1.41 times less risky than Xiwang Foodstuffs. It trades about 0.04 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.01 per unit of risk. If you would invest 2,621 in Qingdao Choho Industrial on September 27, 2024 and sell it today you would earn a total of 52.00 from holding Qingdao Choho Industrial or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Xiwang Foodstuffs |
Qingdao Choho and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Xiwang Foodstuffs
The main advantage of trading using opposite Qingdao Choho and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| Qingdao Choho vs. Hoshine Silicon Ind | Qingdao Choho vs. AVIC Fund Management | Qingdao Choho vs. Huaxia Fund Management | Qingdao Choho vs. Maxvision Technology Corp |
| Xiwang Foodstuffs vs. Northern United Publishing | Xiwang Foodstuffs vs. Guangdong Jingyi Metal | Xiwang Foodstuffs vs. Jiangxi Selon Industrial | Xiwang Foodstuffs vs. Qingdao Choho Industrial |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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