Correlation Between Shandong Mining and Qijing Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Qijing Machinery, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Qijing Machinery.
Diversification Opportunities for Shandong Mining and Qijing Machinery
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Qijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Qijing Machinery go up and down completely randomly.
Pair Corralation between Shandong Mining and Qijing Machinery
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 2.82 times more return on investment than Qijing Machinery. However, Shandong Mining is 2.82 times more volatile than Qijing Machinery. It trades about 0.4 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.05 per unit of risk. If you would invest 294.00 in Shandong Mining Machinery on September 13, 2024 and sell it today you would earn a total of 214.00 from holding Shandong Mining Machinery or generate 72.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Qijing Machinery
Performance |
| Timeline |
| Shandong Mining Machinery |
| Qijing Machinery |
Shandong Mining and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Qijing Machinery
The main advantage of trading using opposite Shandong Mining and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. China Petroleum Chemical | Shandong Mining vs. PetroChina Co Ltd | Shandong Mining vs. China State Construction | Shandong Mining vs. China Railway Group |
| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |