Correlation Between Qijing Machinery and Jinzai Food
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By analyzing existing cross correlation between Qijing Machinery and Jinzai Food Group, you can compare the effects of market volatilities on Qijing Machinery and Jinzai Food 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 Jinzai Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Jinzai Food.
Diversification Opportunities for Qijing Machinery and Jinzai Food
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qijing and Jinzai is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Jinzai Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzai Food Group 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 Jinzai Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzai Food Group has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Jinzai Food go up and down completely randomly.
Pair Corralation between Qijing Machinery and Jinzai Food
Assuming the 90 days trading horizon Qijing Machinery is expected to under-perform the Jinzai Food. In addition to that, Qijing Machinery is 1.04 times more volatile than Jinzai Food Group. It trades about -0.09 of its total potential returns per unit of risk. Jinzai Food Group is currently generating about -0.01 per unit of volatility. If you would invest 1,312 in Jinzai Food Group on October 11, 2024 and sell it today you would lose (23.00) from holding Jinzai Food Group or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Jinzai Food Group
Performance |
| Timeline |
| Qijing Machinery |
| Jinzai Food Group |
Qijing Machinery and Jinzai Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Jinzai Food
The main advantage of trading using opposite Qijing Machinery and Jinzai Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Jinzai Food 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 Jinzai Food will offset losses from the drop in Jinzai Food's long position.| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
| Jinzai Food vs. Guizhou Chanhen Chemical | Jinzai Food vs. Qijing Machinery | Jinzai Food vs. Guangzhou KDT Machinery | Jinzai Food vs. Lutian Machinery 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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