Correlation Between Qijing Machinery and Innovative Medical
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By analyzing existing cross correlation between Qijing Machinery and Innovative Medical Management, you can compare the effects of market volatilities on Qijing Machinery and Innovative Medical 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 Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Innovative Medical.
Diversification Opportunities for Qijing Machinery and Innovative Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qijing and Innovative is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical 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 Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Innovative Medical go up and down completely randomly.
Pair Corralation between Qijing Machinery and Innovative Medical
Assuming the 90 days trading horizon Qijing Machinery is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Qijing Machinery is 1.59 times less risky than Innovative Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Innovative Medical Management on September 28, 2024 and sell it today you would earn a total of 15.00 from holding Innovative Medical Management or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Innovative Medical Management
Performance |
| Timeline |
| Qijing Machinery |
| Innovative Medical |
Qijing Machinery and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Innovative Medical
The main advantage of trading using opposite Qijing Machinery and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Innovative Medical 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. Bank of China |
| Innovative Medical vs. BYD Co Ltd | Innovative Medical vs. China Mobile Limited | Innovative Medical vs. Agricultural Bank of | Innovative Medical vs. Industrial and Commercial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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