Correlation Between Qijing Machinery and Gifore Agricultural
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By analyzing existing cross correlation between Qijing Machinery and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Qijing Machinery and Gifore 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 Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Gifore Agricultural.
Diversification Opportunities for Qijing Machinery and Gifore Agricultural
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qijing and Gifore is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore 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 Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Qijing Machinery and Gifore Agricultural
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.66 times less return on investment than Gifore Agricultural. But when comparing it to its historical volatility, Qijing Machinery is 1.2 times less risky than Gifore Agricultural. It trades about 0.04 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 434.00 in Gifore Agricultural Machinery on October 15, 2024 and sell it today you would earn a total of 48.00 from holding Gifore Agricultural Machinery or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Qijing Machinery |
| Gifore Agricultural |
Qijing Machinery and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Gifore Agricultural
The main advantage of trading using opposite Qijing Machinery and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Gifore 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural's long position.| Qijing Machinery vs. ZYF Lopsking Aluminum | Qijing Machinery vs. Bank of Communications | Qijing Machinery vs. Heilongjiang Transport Development | Qijing Machinery vs. Shanghai Yanpu Metal |
| Gifore Agricultural vs. Huizhou Speed Wireless | Gifore Agricultural vs. China Mobile Limited | Gifore Agricultural vs. Quectel Wireless Solutions | Gifore Agricultural vs. Runjian Communication 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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