Correlation Between Qijing Machinery and Chengdu Kanghua
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By analyzing existing cross correlation between Qijing Machinery and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Qijing Machinery and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Chengdu Kanghua.
Diversification Opportunities for Qijing Machinery and Chengdu Kanghua
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Chengdu is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Qijing Machinery and Chengdu Kanghua
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.95 times more return on investment than Chengdu Kanghua. However, Qijing Machinery is 1.06 times less risky than Chengdu Kanghua. It trades about 0.02 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.03 per unit of risk. If you would invest 1,230 in Qijing Machinery on November 5, 2024 and sell it today you would earn a total of 150.00 from holding Qijing Machinery or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Qijing Machinery |
| Chengdu Kanghua Biol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Qijing Machinery and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Chengdu Kanghua
The main advantage of trading using opposite Qijing Machinery and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Qijing Machinery vs. Shanghai Jinfeng Wine | Qijing Machinery vs. Chongqing Shunbo Aluminum | Qijing Machinery vs. Tonghua Grape Wine | Qijing Machinery vs. Shandong Hongchuang Aluminum |
| Chengdu Kanghua vs. Postal Savings Bank | Chengdu Kanghua vs. Hubei Geoway Investment | Chengdu Kanghua vs. Nuode Investment Co | Chengdu Kanghua vs. Haima Automobile Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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