Correlation Between Qijing Machinery and Guizhou Chanhen
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By analyzing existing cross correlation between Qijing Machinery and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Qijing Machinery and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Guizhou Chanhen.
Diversification Opportunities for Qijing Machinery and Guizhou Chanhen
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qijing and Guizhou is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Qijing Machinery and Guizhou Chanhen
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.07 times more return on investment than Guizhou Chanhen. However, Qijing Machinery is 1.07 times more volatile than Guizhou Chanhen Chemical. It trades about 0.02 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.01 per unit of risk. If you would invest 1,211 in Qijing Machinery on October 26, 2024 and sell it today you would earn a total of 180.00 from holding Qijing Machinery or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Qijing Machinery |
| Guizhou Chanhen Chemical |
Qijing Machinery and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Guizhou Chanhen
The main advantage of trading using opposite Qijing Machinery and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Qijing Machinery vs. Chengdu Kanghua Biological | Qijing Machinery vs. Suzhou Novoprotein Scientific | Qijing Machinery vs. Aluminum Corp of | Qijing Machinery vs. COL Digital Publishing |
| Guizhou Chanhen vs. Central Plains Environment | Guizhou Chanhen vs. GreenTech Environmental Co | Guizhou Chanhen vs. Fujian Nanwang Environment | Guizhou Chanhen vs. Eit Environmental Development |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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