Correlation Between Gem Year and Qingdao Foods
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By analyzing existing cross correlation between Gem Year Industrial Co and Qingdao Foods Co, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Qingdao Foods.
Diversification Opportunities for Gem Year and Qingdao Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gem and Qingdao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Qingdao Foods go up and down completely randomly.
Pair Corralation between Gem Year and Qingdao Foods
Assuming the 90 days trading horizon Gem Year is expected to generate 1.06 times less return on investment than Qingdao Foods. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.05 times less risky than Qingdao Foods. It trades about 0.02 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,483 in Qingdao Foods Co on September 13, 2024 and sell it today you would earn a total of 112.00 from holding Qingdao Foods Co or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Qingdao Foods Co
Performance |
| Timeline |
| Gem Year Industrial |
| Qingdao Foods |
Gem Year and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Qingdao Foods
The main advantage of trading using opposite Gem Year and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Qtone Education Group | Gem Year vs. Zhuhai Comleader Information | Gem Year vs. Chinese Universe Publishing | Gem Year vs. Beijing Jiaman Dress |
| Qingdao Foods vs. Zhejiang Xiantong RubberPlastic | Qingdao Foods vs. King Strong New Material | Qingdao Foods vs. Cangzhou Mingzhu Plastic | Qingdao Foods vs. Tonghua Grape Wine |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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