Correlation Between China Vanke and Qingdao Foods
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By analyzing existing cross correlation between China Vanke Co and Qingdao Foods Co, you can compare the effects of market volatilities on China Vanke 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 China Vanke with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Qingdao Foods.
Diversification Opportunities for China Vanke and Qingdao Foods
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Qingdao is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke 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 China Vanke 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 China Vanke 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 China Vanke i.e., China Vanke and Qingdao Foods go up and down completely randomly.
Pair Corralation between China Vanke and Qingdao Foods
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Qingdao Foods. In addition to that, China Vanke is 1.01 times more volatile than Qingdao Foods Co. It trades about -0.06 of its total potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.01 per unit of volatility. If you would invest 1,367 in Qingdao Foods Co on October 5, 2024 and sell it today you would lose (46.00) from holding Qingdao Foods Co or give up 3.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.67% |
Values | Daily Returns |
China Vanke Co vs. Qingdao Foods Co
Performance |
Timeline |
China Vanke |
Qingdao Foods |
China Vanke and Qingdao Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Vanke and Qingdao Foods
The main advantage of trading using opposite China Vanke and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke 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.China Vanke vs. Shenzhen Noposion Agrochemicals | China Vanke vs. Jiaozuo Wanfang Aluminum | China Vanke vs. Dymatic Chemicals | China Vanke vs. HeBei Jinniu Chemical |
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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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