Correlation Between Qijing Machinery and ADAMA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qijing Machinery and ADAMA, you can compare the effects of market volatilities on Qijing Machinery and ADAMA 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 Qijing Machinery with a short position of ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and ADAMA.
Diversification Opportunities for Qijing Machinery and ADAMA
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and ADAMA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA and Qijing Machinery 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 Qijing Machinery are associated (or correlated) with ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and ADAMA go up and down completely randomly.
Pair Corralation between Qijing Machinery and ADAMA
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.1 times more return on investment than ADAMA. However, Qijing Machinery is 1.1 times more volatile than ADAMA. It trades about 0.03 of its potential returns per unit of risk. ADAMA is currently generating about -0.01 per unit of risk. If you would invest 1,098 in Qijing Machinery on September 12, 2024 and sell it today you would earn a total of 303.00 from holding Qijing Machinery or generate 27.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. ADAMA
Performance |
| Timeline |
| Qijing Machinery |
| ADAMA |
Qijing Machinery and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and ADAMA
The main advantage of trading using opposite Qijing Machinery and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Qijing Machinery vs. Gansu Jiu Steel | Qijing Machinery vs. Shandong Mining Machinery | Qijing Machinery vs. Aba Chemicals Corp | Qijing Machinery vs. BlueFocus Communication Group |
| ADAMA vs. Will Semiconductor Co | ADAMA vs. Guangzhou Restaurants Group | ADAMA vs. Anhui Transport Consulting | ADAMA vs. Nexchip Semiconductor Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |