Correlation Between Shandong Sinoglory and Qingdao Foods
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By analyzing existing cross correlation between Shandong Sinoglory Health and Qingdao Foods Co, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Qingdao Foods.
Diversification Opportunities for Shandong Sinoglory and Qingdao Foods
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods and Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Qingdao Foods go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Qingdao Foods
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 1.38 times more return on investment than Qingdao Foods. However, Shandong Sinoglory is 1.38 times more volatile than Qingdao Foods Co. It trades about 0.13 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.06 per unit of risk. If you would invest 1,428 in Shandong Sinoglory Health on September 9, 2025 and sell it today you would earn a total of 170.00 from holding Shandong Sinoglory Health or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Qingdao Foods Co
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Qingdao Foods |
Shandong Sinoglory and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Qingdao Foods
The main advantage of trading using opposite Shandong Sinoglory and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. Industrial and Commercial | Shandong Sinoglory vs. Agricultural Bank of | Shandong Sinoglory vs. China Construction Bank | Shandong Sinoglory vs. China Mobile Limited |
| Qingdao Foods vs. Shandong Sinoglory Health | Qingdao Foods vs. Dezhan HealthCare Co | Qingdao Foods vs. BlueFocus Communication Group | Qingdao Foods vs. Youngy Health Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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