Correlation Between CITIC Securities and Qijing Machinery
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By analyzing existing cross correlation between CITIC Securities Co and Qijing Machinery, you can compare the effects of market volatilities on CITIC Securities 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 CITIC Securities with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Securities and Qijing Machinery.
Diversification Opportunities for CITIC Securities and Qijing Machinery
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Qijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities Co and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and CITIC Securities 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 CITIC Securities Co 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 CITIC Securities i.e., CITIC Securities and Qijing Machinery go up and down completely randomly.
Pair Corralation between CITIC Securities and Qijing Machinery
Assuming the 90 days trading horizon CITIC Securities Co is expected to generate 0.77 times more return on investment than Qijing Machinery. However, CITIC Securities Co is 1.29 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 0.02 per unit of risk. If you would invest 2,030 in CITIC Securities Co on September 3, 2024 and sell it today you would earn a total of 1,045 from holding CITIC Securities Co or generate 51.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Securities Co vs. Qijing Machinery
Performance |
| Timeline |
| CITIC Securities |
| Qijing Machinery |
CITIC Securities and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Securities and Qijing Machinery
The main advantage of trading using opposite CITIC Securities and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities 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.| CITIC Securities vs. Qijing Machinery | CITIC Securities vs. Linzhou Heavy Machinery | CITIC Securities vs. Jonjee Hi tech Industrial | CITIC Securities vs. Sinomach General Machinery |
| Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Postal Savings Bank | Qijing Machinery vs. Bank of Communications |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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