Correlation Between 159005 and Qijing Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159005 and Qijing Machinery, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Qijing Machinery.
Diversification Opportunities for 159005 and Qijing Machinery
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Qijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and 159005 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 159005 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 159005 i.e., 159005 and Qijing Machinery go up and down completely randomly.
Pair Corralation between 159005 and Qijing Machinery
Assuming the 90 days trading horizon 159005 is expected to generate 16.07 times less return on investment than Qijing Machinery. But when comparing it to its historical volatility, 159005 is 118.83 times less risky than Qijing Machinery. It trades about 0.13 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Qijing Machinery on August 25, 2024 and sell it today you would earn a total of 78.00 from holding Qijing Machinery or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Qijing Machinery
Performance |
| Timeline |
| 159005 |
| Qijing Machinery |
159005 and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Qijing Machinery
The main advantage of trading using opposite 159005 and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Qijing Machinery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Qijing Machinery vs. Lootom Telcovideo Network | Qijing Machinery vs. Shenzhen Topway Video | Qijing Machinery vs. Nuode Investment Co | Qijing Machinery vs. Hubei Geoway Investment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |