Correlation Between Qijing Machinery and Gansu Jiu
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By analyzing existing cross correlation between Qijing Machinery and Gansu Jiu Steel, you can compare the effects of market volatilities on Qijing Machinery and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Gansu Jiu.
Diversification Opportunities for Qijing Machinery and Gansu Jiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qijing and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Gansu Jiu go up and down completely randomly.
Pair Corralation between Qijing Machinery and Gansu Jiu
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.52 times more return on investment than Gansu Jiu. However, Qijing Machinery is 1.52 times more volatile than Gansu Jiu Steel. It trades about -0.14 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.44 per unit of risk. If you would invest 1,430 in Qijing Machinery on October 7, 2024 and sell it today you would lose (142.00) from holding Qijing Machinery or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Gansu Jiu Steel
Performance |
| Timeline |
| Qijing Machinery |
| Gansu Jiu Steel |
Qijing Machinery and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Gansu Jiu
The main advantage of trading using opposite Qijing Machinery and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Gansu Jiu Steel | Qijing Machinery vs. Aba Chemicals Corp | Qijing Machinery vs. Yes Optoelectronics Co |
| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Hoshine Silicon Ind |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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