Correlation Between 159005 and Qingdao Foods
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By analyzing existing cross correlation between 159005 and Qingdao Foods Co, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Qingdao Foods.
Diversification Opportunities for 159005 and Qingdao Foods
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Qingdao is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and 159005 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 159005 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 159005 i.e., 159005 and Qingdao Foods go up and down completely randomly.
Pair Corralation between 159005 and Qingdao Foods
Assuming the 90 days trading horizon 159005 is expected to generate 29.8 times less return on investment than Qingdao Foods. But when comparing it to its historical volatility, 159005 is 105.01 times less risky than Qingdao Foods. It trades about 0.2 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Qingdao Foods Co on September 27, 2024 and sell it today you would earn a total of 188.00 from holding Qingdao Foods Co or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Qingdao Foods Co
Performance |
| Timeline |
| 159005 |
| Qingdao Foods |
159005 and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Qingdao Foods
The main advantage of trading using opposite 159005 and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Qingdao Foods Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Qingdao Foods vs. Ming Yang Smart | Qingdao Foods vs. 159681 | Qingdao Foods vs. 159005 | Qingdao Foods vs. Loctek Ergonomic Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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