Correlation Between China Mengniu and Qed Connect
Can any of the company-specific risk be diversified away by investing in both China Mengniu and Qed Connect at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Mengniu and Qed Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Mengniu Dairy and Qed Connect, you can compare the effects of market volatilities on China Mengniu and Qed Connect 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 Mengniu with a short position of Qed Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mengniu and Qed Connect.
Diversification Opportunities for China Mengniu and Qed Connect
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Qed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Mengniu Dairy and Qed Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qed Connect and China Mengniu 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 Mengniu Dairy are associated (or correlated) with Qed Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qed Connect has no effect on the direction of China Mengniu i.e., China Mengniu and Qed Connect go up and down completely randomly.
Pair Corralation between China Mengniu and Qed Connect
Assuming the 90 days horizon China Mengniu Dairy is expected to under-perform the Qed Connect. But the pink sheet apears to be less risky and, when comparing its historical volatility, China Mengniu Dairy is 5.39 times less risky than Qed Connect. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Qed Connect is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Qed Connect on September 23, 2024 and sell it today you would lose (0.01) from holding Qed Connect or give up 25.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 55.53% |
Values | Daily Returns |
China Mengniu Dairy vs. Qed Connect
Performance |
Timeline |
China Mengniu Dairy |
Qed Connect |
China Mengniu and Qed Connect Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Mengniu and Qed Connect
The main advantage of trading using opposite China Mengniu and Qed Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mengniu position performs unexpectedly, Qed Connect 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 Qed Connect will offset losses from the drop in Qed Connect's long position.China Mengniu vs. Qed Connect | China Mengniu vs. Branded Legacy | China Mengniu vs. Right On Brands | China Mengniu vs. Yuenglings Ice Cream |
Qed Connect vs. Branded Legacy | Qed Connect vs. Right On Brands | Qed Connect vs. Yuenglings Ice Cream | Qed Connect vs. Bit Origin |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |