Correlation Between Juewei Food and Qingdao Choho
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By analyzing existing cross correlation between Juewei Food Co and Qingdao Choho Industrial, you can compare the effects of market volatilities on Juewei Food and Qingdao Choho 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 Juewei Food with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Qingdao Choho.
Diversification Opportunities for Juewei Food and Qingdao Choho
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juewei and Qingdao is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Juewei 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 Juewei Food Co are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Juewei Food i.e., Juewei Food and Qingdao Choho go up and down completely randomly.
Pair Corralation between Juewei Food and Qingdao Choho
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Qingdao Choho. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.17 times less risky than Qingdao Choho. The stock trades about -0.27 of its potential returns per unit of risk. The Qingdao Choho Industrial is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,790 in Qingdao Choho Industrial on October 28, 2024 and sell it today you would earn a total of 440.00 from holding Qingdao Choho Industrial or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Juewei Food |
| Qingdao Choho Industrial |
Juewei Food and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Qingdao Choho
The main advantage of trading using opposite Juewei Food and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Qingdao Choho 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 Choho will offset losses from the drop in Qingdao Choho's long position.| Juewei Food vs. Kweichow Moutai Co | Juewei Food vs. Contemporary Amperex Technology | Juewei Food vs. G bits Network Technology | Juewei Food vs. Beijing Roborock Technology |
| Qingdao Choho vs. Baoshan Iron Steel | Qingdao Choho vs. Nanya New Material | Qingdao Choho vs. Anhui Guofeng Plastic | Qingdao Choho vs. King Strong New Material |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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