Correlation Between Maoming Petro and Qijing Machinery
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Qijing Machinery, you can compare the effects of market volatilities on Maoming Petro and Qijing Machinery 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 Maoming Petro with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Qijing Machinery.
Diversification Opportunities for Maoming Petro and Qijing Machinery
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Qijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Maoming Petro i.e., Maoming Petro and Qijing Machinery go up and down completely randomly.
Pair Corralation between Maoming Petro and Qijing Machinery
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Qijing Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Maoming Petro Chemical Shihua is 1.31 times less risky than Qijing Machinery. The stock trades about -0.32 of its potential returns per unit of risk. The Qijing Machinery is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,405 in Qijing Machinery on October 12, 2024 and sell it today you would lose (118.00) from holding Qijing Machinery or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Qijing Machinery
Performance |
| Timeline |
| Maoming Petro Chemical |
| Qijing Machinery |
Maoming Petro and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Qijing Machinery
The main advantage of trading using opposite Maoming Petro and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| Maoming Petro vs. Tongxing Environmental Protection | Maoming Petro vs. Innovative Medical Management | Maoming Petro vs. Xiangyu Medical Co | Maoming Petro vs. Shandong Iron and |
| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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