Correlation Between Zhejiang Qianjiang and Qijing Machinery
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Qijing Machinery, you can compare the effects of market volatilities on Zhejiang Qianjiang 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 Zhejiang Qianjiang with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Qijing Machinery.
Diversification Opportunities for Zhejiang Qianjiang and Qijing Machinery
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Qijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Qijing Machinery go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Qijing Machinery
Assuming the 90 days trading horizon Zhejiang Qianjiang is expected to generate 2.26 times less return on investment than Qijing Machinery. In addition to that, Zhejiang Qianjiang is 1.16 times more volatile than Qijing Machinery. It trades about 0.01 of its total potential returns per unit of risk. Qijing Machinery is currently generating about 0.03 per unit of volatility. If you would invest 1,164 in Qijing Machinery on September 4, 2024 and sell it today you would earn a total of 203.00 from holding Qijing Machinery or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Qijing Machinery
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Qijing Machinery |
Zhejiang Qianjiang and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Qijing Machinery
The main advantage of trading using opposite Zhejiang Qianjiang and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang 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.| Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Kweichow Moutai Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of Communications |
| Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. China Mobile Limited | Qijing Machinery vs. CNOOC Limited | Qijing Machinery vs. Ping An Insurance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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