Correlation Between Shenyang Huitian and Qijing Machinery
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Qijing Machinery, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Qijing Machinery.
Diversification Opportunities for Shenyang Huitian and Qijing Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Qijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Qijing Machinery go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Qijing Machinery
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.32 times more return on investment than Qijing Machinery. However, Shenyang Huitian is 1.32 times more volatile than Qijing Machinery. It trades about 0.04 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.1 per unit of risk. If you would invest 350.00 in Shenyang Huitian Thermal on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Shenyang Huitian Thermal or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Qijing Machinery
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Qijing Machinery |
Shenyang Huitian and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Qijing Machinery
The main advantage of trading using opposite Shenyang Huitian and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Wuhan Yangtze Communication | Shenyang Huitian vs. Henzhen Zhaowei Machinery | Shenyang Huitian vs. Sinomach General Machinery | Shenyang Huitian vs. Nanjing Putian Telecommunications |
| Qijing Machinery vs. Nanjing Putian Telecommunications | Qijing Machinery vs. Shenzhen Hifuture Electric | Qijing Machinery vs. Shenyang Huitian Thermal | Qijing Machinery vs. Jiangsu Xinning Modern |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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