Correlation Between HUANLEJIA Food and Qingdao Hi
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By analyzing existing cross correlation between HUANLEJIA Food Group and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on HUANLEJIA Food and Qingdao Hi 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 HUANLEJIA Food with a short position of Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUANLEJIA Food and Qingdao Hi.
Diversification Opportunities for HUANLEJIA Food and Qingdao Hi
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUANLEJIA and Qingdao is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HUANLEJIA Food Group and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech and HUANLEJIA Food 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 HUANLEJIA Food Group are associated (or correlated) with Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of HUANLEJIA Food i.e., HUANLEJIA Food and Qingdao Hi go up and down completely randomly.
Pair Corralation between HUANLEJIA Food and Qingdao Hi
Assuming the 90 days trading horizon HUANLEJIA Food is expected to generate 10.91 times less return on investment than Qingdao Hi. But when comparing it to its historical volatility, HUANLEJIA Food Group is 1.93 times less risky than Qingdao Hi. It trades about 0.08 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 2,125 in Qingdao Hi Tech Moulds on December 4, 2024 and sell it today you would earn a total of 1,175 from holding Qingdao Hi Tech Moulds or generate 55.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUANLEJIA Food Group vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| HUANLEJIA Food Group |
| Qingdao Hi Tech |
HUANLEJIA Food and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUANLEJIA Food and Qingdao Hi
The main advantage of trading using opposite HUANLEJIA Food and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUANLEJIA Food position performs unexpectedly, Qingdao Hi 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 Hi will offset losses from the drop in Qingdao Hi's long position.| HUANLEJIA Food vs. Huatian Hotel Group | HUANLEJIA Food vs. Farsoon Technology Co | HUANLEJIA Food vs. Anhui Huaren Health | HUANLEJIA Food vs. Guangzhou Dongfang Hotel |
| Qingdao Hi vs. Gan Yuan Foods | Qingdao Hi vs. Shantou Wanshun Package | Qingdao Hi vs. Shanghai Ziyan Foods | Qingdao Hi vs. China Greatwall Computer |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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