Correlation Between Jiangsu Yueda and Qingdao Foods
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Qingdao Foods Co, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Qingdao Foods.
Diversification Opportunities for Jiangsu Yueda and Qingdao Foods
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Qingdao is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Qingdao Foods go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Qingdao Foods
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.79 times more return on investment than Qingdao Foods. However, Jiangsu Yueda Investment is 1.26 times less risky than Qingdao Foods. It trades about -0.11 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about -0.09 per unit of risk. If you would invest 473.00 in Jiangsu Yueda Investment on October 30, 2024 and sell it today you would lose (45.00) from holding Jiangsu Yueda Investment or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Qingdao Foods Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Qingdao Foods |
Jiangsu Yueda and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Qingdao Foods
The main advantage of trading using opposite Jiangsu Yueda and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. China Construction Bank | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. Agricultural Bank of |
| Qingdao Foods vs. Youyou Foods Co | Qingdao Foods vs. Dongnan Electronics Co | Qingdao Foods vs. Techshine Electronics Co | Qingdao Foods vs. Guilin Seamild Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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