Correlation Between Qijing Machinery and State Grid
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By analyzing existing cross correlation between Qijing Machinery and State Grid InformationCommunication, you can compare the effects of market volatilities on Qijing Machinery and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and State Grid.
Diversification Opportunities for Qijing Machinery and State Grid
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and State is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and State Grid go up and down completely randomly.
Pair Corralation between Qijing Machinery and State Grid
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 4.06 times less return on investment than State Grid. But when comparing it to its historical volatility, Qijing Machinery is 1.24 times less risky than State Grid. It trades about 0.02 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,823 in State Grid InformationCommunication on September 3, 2024 and sell it today you would earn a total of 399.00 from holding State Grid InformationCommunication or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. State Grid InformationCommunic
Performance |
| Timeline |
| Qijing Machinery |
| State Grid Informati |
Qijing Machinery and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and State Grid
The main advantage of trading using opposite Qijing Machinery and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Postal Savings Bank | Qijing Machinery vs. Bank of Communications |
| State Grid vs. Guangdong Jingyi Metal | State Grid vs. Ye Chiu Metal | State Grid vs. Qinghaihuading Industrial Co | State Grid vs. Qijing Machinery |
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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