Correlation Between Qijing Machinery and Zhejiang Qianjiang
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By analyzing existing cross correlation between Qijing Machinery and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Qijing Machinery and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Zhejiang Qianjiang.
Diversification Opportunities for Qijing Machinery and Zhejiang Qianjiang
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qijing and Zhejiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Qijing Machinery and Zhejiang Qianjiang
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.98 times more return on investment than Zhejiang Qianjiang. However, Qijing Machinery is 1.02 times less risky than Zhejiang Qianjiang. It trades about 0.19 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.05 per unit of risk. If you would invest 1,030 in Qijing Machinery on September 12, 2024 and sell it today you would earn a total of 371.00 from holding Qijing Machinery or generate 36.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Qijing Machinery |
| Zhejiang Qianjiang |
Qijing Machinery and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Zhejiang Qianjiang
The main advantage of trading using opposite Qijing Machinery and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang'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 |
| Zhejiang Qianjiang vs. Lutian Machinery Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Gansu Jiu Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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