Correlation Between Shenzhen Topway and Qijing Machinery
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By analyzing existing cross correlation between Shenzhen Topway Video and Qijing Machinery, you can compare the effects of market volatilities on Shenzhen Topway 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 Topway with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Qijing Machinery.
Diversification Opportunities for Shenzhen Topway and Qijing Machinery
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Qijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Shenzhen Topway 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 Topway Video 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 Topway i.e., Shenzhen Topway and Qijing Machinery go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Qijing Machinery
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 1.4 times more return on investment than Qijing Machinery. However, Shenzhen Topway is 1.4 times more volatile than Qijing Machinery. It trades about 0.06 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.11 per unit of risk. If you would invest 930.00 in Shenzhen Topway Video on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Shenzhen Topway Video or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Qijing Machinery
Performance |
| Timeline |
| Shenzhen Topway Video |
| Qijing Machinery |
Shenzhen Topway and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Qijing Machinery
The main advantage of trading using opposite Shenzhen Topway and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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 Topway vs. Chengdu Kanghua Biological | Shenzhen Topway vs. Beijing Wantai Biological | Shenzhen Topway vs. Suzhou Novoprotein Scientific | Shenzhen Topway vs. Aluminum Corp of |
| Qijing Machinery vs. Zhejiang Kingland Pipeline | Qijing Machinery vs. XinJiang GuoTong Pipeline | Qijing Machinery vs. Kunwu Jiuding Investment | Qijing Machinery vs. Cultural Investment Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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