Correlation Between Qijing Machinery and Huasi Agricultural
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By analyzing existing cross correlation between Qijing Machinery and Huasi Agricultural Development, you can compare the effects of market volatilities on Qijing Machinery and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Huasi Agricultural.
Diversification Opportunities for Qijing Machinery and Huasi Agricultural
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and Huasi is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Qijing Machinery and Huasi Agricultural
Assuming the 90 days trading horizon Qijing Machinery is expected to under-perform the Huasi Agricultural. In addition to that, Qijing Machinery is 1.33 times more volatile than Huasi Agricultural Development. It trades about -0.11 of its total potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.08 per unit of volatility. If you would invest 404.00 in Huasi Agricultural Development on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Huasi Agricultural Development or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Huasi Agricultural Development
Performance |
| Timeline |
| Qijing Machinery |
| Huasi Agricultural |
Qijing Machinery and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Huasi Agricultural
The main advantage of trading using opposite Qijing Machinery and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Qijing Machinery vs. Zhejiang Kingland Pipeline | Qijing Machinery vs. XinJiang GuoTong Pipeline | Qijing Machinery vs. Kunwu Jiuding Investment | Qijing Machinery vs. Cultural Investment Holdings |
| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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