Correlation Between Gansu Huangtai and Qijing Machinery
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Qijing Machinery, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Qijing Machinery.
Diversification Opportunities for Gansu Huangtai and Qijing Machinery
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Qijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Qijing Machinery go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Qijing Machinery
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.56 times more return on investment than Qijing Machinery. However, Gansu Huangtai is 1.56 times more volatile than Qijing Machinery. It trades about 0.07 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.08 per unit of risk. If you would invest 1,553 in Gansu Huangtai Wine marketing on October 12, 2024 and sell it today you would earn a total of 149.00 from holding Gansu Huangtai Wine marketing or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Qijing Machinery
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Qijing Machinery |
Gansu Huangtai and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Qijing Machinery
The main advantage of trading using opposite Gansu Huangtai and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Anhui Tongguan Copper | Gansu Huangtai vs. Qingdao Foods Co | Gansu Huangtai vs. Shanghai Yanpu Metal | Gansu Huangtai vs. Dalian Thermal Power |
| Qijing Machinery vs. Changjiang Jinggong Steel | Qijing Machinery vs. Qiaoyin Environmental Tech | Qijing Machinery vs. Kuang Chi Technologies | Qijing Machinery vs. Jiangxi Hengda Hi Tech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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