Correlation Between Anhui Transport and Qijing Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Qijing Machinery, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Qijing Machinery.
Diversification Opportunities for Anhui Transport and Qijing Machinery
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Qijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Qijing Machinery go up and down completely randomly.
Pair Corralation between Anhui Transport and Qijing Machinery
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.53 times less return on investment than Qijing Machinery. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.12 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 0.18 of returns per unit of risk over similar time horizon. If you would invest 984.00 in Qijing Machinery on August 29, 2024 and sell it today you would earn a total of 316.00 from holding Qijing Machinery or generate 32.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Qijing Machinery
Performance |
| Timeline |
| Anhui Transport Cons |
| Qijing Machinery |
Anhui Transport and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Qijing Machinery
The main advantage of trading using opposite Anhui Transport and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
| Qijing Machinery vs. Zhejiang Kingland Pipeline | Qijing Machinery vs. XinJiang GuoTong Pipeline | Qijing Machinery vs. Kunwu Jiuding Investment | Qijing Machinery vs. Cultural Investment Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |