Correlation Between Qijing Machinery and Northking Information
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By analyzing existing cross correlation between Qijing Machinery and Northking Information Technology, you can compare the effects of market volatilities on Qijing Machinery and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Northking Information.
Diversification Opportunities for Qijing Machinery and Northking Information
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qijing and Northking is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Northking Information go up and down completely randomly.
Pair Corralation between Qijing Machinery and Northking Information
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.07 times more return on investment than Northking Information. However, Qijing Machinery is 1.07 times more volatile than Northking Information Technology. It trades about -0.1 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.11 per unit of risk. If you would invest 1,420 in Qijing Machinery on August 27, 2024 and sell it today you would lose (105.00) from holding Qijing Machinery or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Northking Information Technolo
Performance |
| Timeline |
| Qijing Machinery |
| Northking Information |
Qijing Machinery and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Northking Information
The main advantage of trading using opposite Qijing Machinery and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Qijing Machinery vs. Nanjing Putian Telecommunications | Qijing Machinery vs. Shenzhen Hifuture Electric | Qijing Machinery vs. Shenyang Huitian Thermal | Qijing Machinery vs. Jiangsu Xinning Modern |
| Northking Information vs. Cultural Investment Holdings | Northking Information vs. Gome Telecom Equipment | Northking Information vs. Bus Online Co | Northking Information vs. Holitech Technology Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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