Correlation Between Qijing Machinery and Lootom Telcovideo
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By analyzing existing cross correlation between Qijing Machinery and Lootom Telcovideo Network, you can compare the effects of market volatilities on Qijing Machinery and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Lootom Telcovideo.
Diversification Opportunities for Qijing Machinery and Lootom Telcovideo
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and Lootom is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Qijing Machinery and Lootom Telcovideo
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.13 times more return on investment than Lootom Telcovideo. However, Qijing Machinery is 1.13 times more volatile than Lootom Telcovideo Network. It trades about 0.02 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about -0.04 per unit of risk. If you would invest 1,267 in Qijing Machinery on August 25, 2024 and sell it today you would lose (2.00) from holding Qijing Machinery or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qijing Machinery vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Qijing Machinery |
| Lootom Telcovideo Network |
Qijing Machinery and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Lootom Telcovideo
The main advantage of trading using opposite Qijing Machinery and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Qijing Machinery vs. Lootom Telcovideo Network | Qijing Machinery vs. Shenzhen Topway Video | Qijing Machinery vs. Nuode Investment Co | Qijing Machinery vs. Hubei Geoway Investment |
| Lootom Telcovideo vs. Shenzhen MYS Environmental | Lootom Telcovideo vs. AVIC Fund Management | Lootom Telcovideo vs. Shenzhen Bingchuan Network | Lootom Telcovideo vs. Penghua Shenzhen Energy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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