Correlation Between China Asset and Qijing Machinery
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By analyzing existing cross correlation between China Asset Management and Qijing Machinery, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Qijing Machinery.
Diversification Opportunities for China Asset and Qijing Machinery
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Qijing is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Qijing Machinery go up and down completely randomly.
Pair Corralation between China Asset and Qijing Machinery
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.42 times more return on investment than Qijing Machinery. However, China Asset Management is 2.39 times less risky than Qijing Machinery. It trades about 0.43 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.04 per unit of risk. If you would invest 316.00 in China Asset Management on September 28, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Qijing Machinery
Performance |
| Timeline |
| China Asset Management |
| Qijing Machinery |
China Asset and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Qijing Machinery
The main advantage of trading using opposite China Asset and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Agricultural Bank of | 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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