Correlation Between Fujian Boss and Qingdao Foods
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By analyzing existing cross correlation between Fujian Boss Software and Qingdao Foods Co, you can compare the effects of market volatilities on Fujian Boss 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 Fujian Boss with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Qingdao Foods.
Diversification Opportunities for Fujian Boss and Qingdao Foods
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Qingdao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Fujian Boss 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 Fujian Boss Software 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 Fujian Boss i.e., Fujian Boss and Qingdao Foods go up and down completely randomly.
Pair Corralation between Fujian Boss and Qingdao Foods
Assuming the 90 days trading horizon Fujian Boss Software is expected to generate 1.41 times more return on investment than Qingdao Foods. However, Fujian Boss is 1.41 times more volatile than Qingdao Foods Co. It trades about 0.2 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.16 per unit of risk. If you would invest 1,161 in Fujian Boss Software on September 3, 2024 and sell it today you would earn a total of 661.00 from holding Fujian Boss Software or generate 56.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Qingdao Foods Co
Performance |
| Timeline |
| Fujian Boss Software |
| Qingdao Foods |
Fujian Boss and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Qingdao Foods
The main advantage of trading using opposite Fujian Boss and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss 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.| Fujian Boss vs. Qingdao Foods Co | Fujian Boss vs. Gan Yuan Foods | Fujian Boss vs. Xiamen Jihong Package | Fujian Boss vs. Beijing Sanyuan Foods |
| Qingdao Foods vs. Tieling Newcity Investment | Qingdao Foods vs. Shaanxi Energy Investment | Qingdao Foods vs. Fujian Rongji Software | Qingdao Foods vs. Zhongrun Resources Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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