Correlation Between Cansino Biologics and Qingdao Foods
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By analyzing existing cross correlation between Cansino Biologics and Qingdao Foods Co, you can compare the effects of market volatilities on Cansino Biologics 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 Cansino Biologics with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Qingdao Foods.
Diversification Opportunities for Cansino Biologics and Qingdao Foods
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cansino and Qingdao is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Cansino Biologics 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 Cansino Biologics 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 Cansino Biologics i.e., Cansino Biologics and Qingdao Foods go up and down completely randomly.
Pair Corralation between Cansino Biologics and Qingdao Foods
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Qingdao Foods. But the stock apears to be less risky and, when comparing its historical volatility, Cansino Biologics is 1.23 times less risky than Qingdao Foods. The stock trades about -0.15 of its potential returns per unit of risk. The Qingdao Foods Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,478 in Qingdao Foods Co on October 30, 2024 and sell it today you would lose (153.00) from holding Qingdao Foods Co or give up 10.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Qingdao Foods Co
Performance |
| Timeline |
| Cansino Biologics |
| Qingdao Foods |
Cansino Biologics and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Qingdao Foods
The main advantage of trading using opposite Cansino Biologics and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics 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.| Cansino Biologics vs. Zhongyin Babi Food | Cansino Biologics vs. Zhejiang Construction Investment | Cansino Biologics vs. Guilin Seamild Foods | Cansino Biologics vs. Tsingtao Brewery Co |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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