Correlation Between Sinomach General and Qijing Machinery
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By analyzing existing cross correlation between Sinomach General Machinery and Qijing Machinery, you can compare the effects of market volatilities on Sinomach General 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 Sinomach General with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Qijing Machinery.
Diversification Opportunities for Sinomach General and Qijing Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Qijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Sinomach General 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 Sinomach General 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 Sinomach General i.e., Sinomach General and Qijing Machinery go up and down completely randomly.
Pair Corralation between Sinomach General and Qijing Machinery
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 1.26 times more return on investment than Qijing Machinery. However, Sinomach General is 1.26 times more volatile than Qijing Machinery. It trades about 0.04 of its potential returns per unit of risk. Qijing Machinery is currently generating about 0.0 per unit of risk. If you would invest 1,389 in Sinomach General Machinery on September 1, 2024 and sell it today you would earn a total of 270.00 from holding Sinomach General Machinery or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Qijing Machinery
Performance |
| Timeline |
| Sinomach General Mac |
| Qijing Machinery |
Sinomach General and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Qijing Machinery
The main advantage of trading using opposite Sinomach General and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General 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.| Sinomach General vs. Everjoy Health Group | Sinomach General vs. FSPG Hi Tech Co | Sinomach General vs. Sichuan Jinshi Technology | Sinomach General vs. Guangdong Shenglu Telecommunication |
| Qijing Machinery vs. Cultural Investment Holdings | Qijing Machinery vs. Gome Telecom Equipment | Qijing Machinery vs. Bus Online Co | Qijing Machinery vs. Zotye Automobile Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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