Correlation Between Hangzhou Gisway and Qingdao Foods
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By analyzing existing cross correlation between Hangzhou Gisway Information and Qingdao Foods Co, you can compare the effects of market volatilities on Hangzhou Gisway 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 Hangzhou Gisway with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Qingdao Foods.
Diversification Opportunities for Hangzhou Gisway and Qingdao Foods
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Qingdao is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Hangzhou Gisway 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 Hangzhou Gisway Information 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 Hangzhou Gisway i.e., Hangzhou Gisway and Qingdao Foods go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Qingdao Foods
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to under-perform the Qingdao Foods. In addition to that, Hangzhou Gisway is 1.29 times more volatile than Qingdao Foods Co. It trades about -0.01 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.02 per unit of volatility. If you would invest 1,567 in Qingdao Foods Co on September 14, 2024 and sell it today you would earn a total of 112.00 from holding Qingdao Foods Co or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Qingdao Foods Co
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Qingdao Foods |
Hangzhou Gisway and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Qingdao Foods
The main advantage of trading using opposite Hangzhou Gisway and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway 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.| Hangzhou Gisway vs. Dongjiang Environmental Co | Hangzhou Gisway vs. Shandong Iron and | Hangzhou Gisway vs. Changchun BCHT Biotechnology | Hangzhou Gisway vs. Air China Ltd |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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