Correlation Between Advanced Technology and Qijing Machinery
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By analyzing existing cross correlation between Advanced Technology Materials and Qijing Machinery, you can compare the effects of market volatilities on Advanced Technology 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 Advanced Technology with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Qijing Machinery.
Diversification Opportunities for Advanced Technology and Qijing Machinery
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Qijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Advanced Technology 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 Advanced Technology Materials 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 Advanced Technology i.e., Advanced Technology and Qijing Machinery go up and down completely randomly.
Pair Corralation between Advanced Technology and Qijing Machinery
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 1.02 times more return on investment than Qijing Machinery. However, Advanced Technology is 1.02 times more volatile than Qijing Machinery. It trades about 0.08 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.05 per unit of risk. If you would invest 954.00 in Advanced Technology Materials on October 14, 2024 and sell it today you would earn a total of 136.00 from holding Advanced Technology Materials or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. Qijing Machinery
Performance |
| Timeline |
| Advanced Technology |
| Qijing Machinery |
Advanced Technology and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and Qijing Machinery
The main advantage of trading using opposite Advanced Technology and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology 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.| Advanced Technology vs. Dosilicon Co | Advanced Technology vs. Guangzhou Jointas Chemical | Advanced Technology vs. Hunan Tyen Machinery | Advanced Technology vs. Liuzhou Chemical Industry |
| Qijing Machinery vs. Easyhome New Retail | Qijing Machinery vs. Hangzhou Gaoxin Rubber | Qijing Machinery vs. Advanced Technology Materials | Qijing Machinery vs. Runjian Communication 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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