Correlation Between King Strong and Qingdao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between King Strong New Material and Qingdao Foods Co, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Qingdao Foods.
Diversification Opportunities for King Strong and Qingdao Foods
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Qingdao Foods go up and down completely randomly.
Pair Corralation between King Strong and Qingdao Foods
Assuming the 90 days trading horizon King Strong is expected to generate 3.42 times less return on investment than Qingdao Foods. In addition to that, King Strong is 1.19 times more volatile than Qingdao Foods Co. It trades about 0.06 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.25 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 220.00 from holding Qingdao Foods Co or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Qingdao Foods Co
Performance |
| Timeline |
| King Strong New |
| Qingdao Foods |
King Strong and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Qingdao Foods
The main advantage of trading using opposite King Strong and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Ming Yang Smart | King Strong vs. 159681 | King Strong vs. 159005 | King Strong vs. Loctek Ergonomic Technology |
| Qingdao Foods vs. ButOne Information Corp | Qingdao Foods vs. Cultural Investment Holdings | Qingdao Foods vs. Hangzhou Gisway Information | Qingdao Foods vs. Emdoor Information 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |