Correlation Between Qijing Machinery and JS Corrugating
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By analyzing existing cross correlation between Qijing Machinery and JS Corrugating Machinery, you can compare the effects of market volatilities on Qijing Machinery and JS Corrugating 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 JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and JS Corrugating.
Diversification Opportunities for Qijing Machinery and JS Corrugating
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and 000821 is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery 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 JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and JS Corrugating go up and down completely randomly.
Pair Corralation between Qijing Machinery and JS Corrugating
Assuming the 90 days trading horizon Qijing Machinery is expected to under-perform the JS Corrugating. But the stock apears to be less risky and, when comparing its historical volatility, Qijing Machinery is 1.36 times less risky than JS Corrugating. The stock trades about -0.1 of its potential returns per unit of risk. The JS Corrugating Machinery is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,465 in JS Corrugating Machinery on August 27, 2024 and sell it today you would lose (91.00) from holding JS Corrugating Machinery or give up 6.21% 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. JS Corrugating Machinery
Performance |
| Timeline |
| Qijing Machinery |
| JS Corrugating Machinery |
Qijing Machinery and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and JS Corrugating
The main advantage of trading using opposite Qijing Machinery and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| Qijing Machinery vs. Nanjing Putian Telecommunications | Qijing Machinery vs. Shenzhen Hifuture Electric | Qijing Machinery vs. Shenyang Huitian Thermal | Qijing Machinery vs. Jiangsu Xinning Modern |
| JS Corrugating vs. Biwin Storage Technology | JS Corrugating vs. PetroChina Co Ltd | JS Corrugating vs. Industrial and Commercial | JS Corrugating vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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