Correlation Between Shenzhen Hifuture and Qijing Machinery
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Qijing Machinery, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Qijing Machinery.
Diversification Opportunities for Shenzhen Hifuture and Qijing Machinery
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Qijing is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Qijing Machinery go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Qijing Machinery
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.02 times more return on investment than Qijing Machinery. However, Shenzhen Hifuture is 1.02 times more volatile than Qijing Machinery. It trades about 0.24 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.05 per unit of risk. If you would invest 241.00 in Shenzhen Hifuture Electric on August 31, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen Hifuture Electric or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Qijing Machinery
Performance |
| Timeline |
| Shenzhen Hifuture |
| Qijing Machinery |
Shenzhen Hifuture and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Qijing Machinery
The main advantage of trading using opposite Shenzhen Hifuture and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Anhui Gujing Distillery | Shenzhen Hifuture vs. Tonghua Grape Wine | Shenzhen Hifuture vs. Shanghai CEO Environmental | Shenzhen Hifuture vs. Henan Shuanghui Investment |
| Qijing Machinery vs. Kweichow Moutai Co | Qijing Machinery vs. NAURA Technology Group | Qijing Machinery vs. APT Medical | Qijing Machinery vs. Contemporary Amperex Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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