Correlation Between Qijing Machinery and Haima Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qijing Machinery and Haima Automobile Group, you can compare the effects of market volatilities on Qijing Machinery and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Haima Automobile.
Diversification Opportunities for Qijing Machinery and Haima Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and Haima is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Haima Automobile go up and down completely randomly.
Pair Corralation between Qijing Machinery and Haima Automobile
Assuming the 90 days trading horizon Qijing Machinery is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Qijing Machinery is 2.18 times less risky than Haima Automobile. The stock trades about -0.09 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 518.00 in Haima Automobile Group on September 4, 2024 and sell it today you would lose (23.00) from holding Haima Automobile Group or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Haima Automobile Group
Performance |
| Timeline |
| Qijing Machinery |
| Haima Automobile |
Qijing Machinery and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Haima Automobile
The main advantage of trading using opposite Qijing Machinery and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. China Mobile Limited | Qijing Machinery vs. CNOOC Limited | Qijing Machinery vs. Ping An Insurance |
| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |