Correlation Between Guangdong Jinming and Qijing Machinery
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By analyzing existing cross correlation between Guangdong Jinming Machinery and Qijing Machinery, you can compare the effects of market volatilities on Guangdong Jinming 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 Guangdong Jinming with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and Qijing Machinery.
Diversification Opportunities for Guangdong Jinming and Qijing Machinery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Qijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Guangdong Jinming 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 Guangdong Jinming 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 Guangdong Jinming i.e., Guangdong Jinming and Qijing Machinery go up and down completely randomly.
Pair Corralation between Guangdong Jinming and Qijing Machinery
Assuming the 90 days trading horizon Guangdong Jinming Machinery is expected to generate 1.59 times more return on investment than Qijing Machinery. However, Guangdong Jinming is 1.59 times more volatile than Qijing Machinery. It trades about 0.18 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.19 per unit of risk. If you would invest 445.00 in Guangdong Jinming Machinery on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Guangdong Jinming Machinery or generate 53.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinming Machinery vs. Qijing Machinery
Performance |
| Timeline |
| Guangdong Jinming |
| Qijing Machinery |
Guangdong Jinming and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinming and Qijing Machinery
The main advantage of trading using opposite Guangdong Jinming and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming 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.| Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Bank of China | Guangdong Jinming vs. PetroChina Co Ltd |
| Qijing Machinery vs. Gansu Jiu Steel | Qijing Machinery vs. Shandong Mining Machinery | Qijing Machinery vs. Aba Chemicals Corp | Qijing Machinery vs. BlueFocus Communication Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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