Correlation Between Guizhou Chanhen and Qijing Machinery
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Qijing Machinery, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Qijing Machinery.
Diversification Opportunities for Guizhou Chanhen and Qijing Machinery
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guizhou and Qijing is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Qijing Machinery go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Qijing Machinery
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.69 times more return on investment than Qijing Machinery. However, Guizhou Chanhen Chemical is 1.44 times less risky than Qijing Machinery. It trades about -0.05 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.11 per unit of risk. If you would invest 2,221 in Guizhou Chanhen Chemical on October 12, 2024 and sell it today you would lose (61.00) from holding Guizhou Chanhen Chemical or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Qijing Machinery
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Qijing Machinery |
Guizhou Chanhen and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Qijing Machinery
The main advantage of trading using opposite Guizhou Chanhen and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication Co |
| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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