Correlation Between Qijing Machinery and Taiji Computer
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By analyzing existing cross correlation between Qijing Machinery and Taiji Computer Corp, you can compare the effects of market volatilities on Qijing Machinery and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Taiji Computer.
Diversification Opportunities for Qijing Machinery and Taiji Computer
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Taiji is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Taiji Computer go up and down completely randomly.
Pair Corralation between Qijing Machinery and Taiji Computer
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.35 times more return on investment than Taiji Computer. However, Qijing Machinery is 1.35 times more volatile than Taiji Computer Corp. It trades about 0.02 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.11 per unit of risk. If you would invest 1,378 in Qijing Machinery on October 31, 2024 and sell it today you would earn a total of 2.00 from holding Qijing Machinery or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Taiji Computer Corp
Performance |
| Timeline |
| Qijing Machinery |
| Taiji Computer Corp |
Qijing Machinery and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Taiji Computer
The main advantage of trading using opposite Qijing Machinery and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Qijing Machinery vs. TianJin 712 Communication | Qijing Machinery vs. Beijing Bewinner Communications | Qijing Machinery vs. Xiangyang Automobile Bearing | Qijing Machinery vs. Quectel Wireless Solutions |
| Taiji Computer vs. Anhui Transport Consulting | Taiji Computer vs. Runjian Communication Co | Taiji Computer vs. Sportsoul Co Ltd | Taiji Computer vs. Unisplendour 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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