Correlation Between Qijing Machinery and Jiangxi Hengda
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By analyzing existing cross correlation between Qijing Machinery and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Qijing Machinery and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Jiangxi Hengda.
Diversification Opportunities for Qijing Machinery and Jiangxi Hengda
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Jiangxi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Qijing Machinery and Jiangxi Hengda
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.76 times more return on investment than Jiangxi Hengda. However, Qijing Machinery is 1.76 times more volatile than Jiangxi Hengda Hi Tech. It trades about 0.18 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.06 per unit of risk. If you would invest 1,421 in Qijing Machinery on December 10, 2024 and sell it today you would earn a total of 172.00 from holding Qijing Machinery or generate 12.1% 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Qijing Machinery |
| Jiangxi Hengda Hi |
Qijing Machinery and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Jiangxi Hengda
The main advantage of trading using opposite Qijing Machinery and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Qijing Machinery vs. Yonghui Superstores Co | ||
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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