Correlation Between Qijing Machinery and Weihai Honglin
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By analyzing existing cross correlation between Qijing Machinery and Weihai Honglin Electronic, you can compare the effects of market volatilities on Qijing Machinery and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Weihai Honglin.
Diversification Opportunities for Qijing Machinery and Weihai Honglin
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Qijing and Weihai is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Weihai Honglin go up and down completely randomly.
Pair Corralation between Qijing Machinery and Weihai Honglin
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.73 times more return on investment than Weihai Honglin. However, Qijing Machinery is 1.37 times less risky than Weihai Honglin. It trades about 0.2 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about 0.12 per unit of risk. If you would invest 1,250 in Qijing Machinery on November 5, 2024 and sell it today you would earn a total of 130.00 from holding Qijing Machinery or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Qijing Machinery |
| Weihai Honglin Electronic |
Qijing Machinery and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Weihai Honglin
The main advantage of trading using opposite Qijing Machinery and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin'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 |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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