Correlation Between Jiahe Foods and Qingdao Foods
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By analyzing existing cross correlation between Jiahe Foods Industry and Qingdao Foods Co, you can compare the effects of market volatilities on Jiahe Foods 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 Jiahe Foods with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Qingdao Foods.
Diversification Opportunities for Jiahe Foods and Qingdao Foods
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Qingdao is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Jiahe Foods 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 Jiahe Foods Industry 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 Jiahe Foods i.e., Jiahe Foods and Qingdao Foods go up and down completely randomly.
Pair Corralation between Jiahe Foods and Qingdao Foods
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Qingdao Foods. In addition to that, Jiahe Foods is 1.61 times more volatile than Qingdao Foods Co. It trades about -0.08 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about -0.08 per unit of volatility. If you would invest 1,373 in Qingdao Foods Co on October 26, 2024 and sell it today you would lose (48.00) from holding Qingdao Foods Co or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Qingdao Foods Co
Performance |
| Timeline |
| Jiahe Foods Industry |
| Qingdao Foods |
Jiahe Foods and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Qingdao Foods
The main advantage of trading using opposite Jiahe Foods and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods 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.| Jiahe Foods vs. Kweichow Moutai Co | Jiahe Foods vs. Contemporary Amperex Technology | Jiahe Foods vs. G bits Network Technology | Jiahe Foods vs. Beijing Roborock Technology |
| Qingdao Foods vs. JCHX Mining Management | Qingdao Foods vs. Chenzhou Jingui Silver | Qingdao Foods vs. Tibet Huayu Mining | Qingdao Foods vs. China Everbright Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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