Correlation Between Qijing Machinery and Wuhan Yangtze
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By analyzing existing cross correlation between Qijing Machinery and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Qijing Machinery and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Wuhan Yangtze.
Diversification Opportunities for Qijing Machinery and Wuhan Yangtze
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Wuhan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Qijing Machinery and Wuhan Yangtze
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.86 times more return on investment than Wuhan Yangtze. However, Qijing Machinery is 1.16 times less risky than Wuhan Yangtze. It trades about 0.12 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about -0.14 per unit of risk. If you would invest 1,265 in Qijing Machinery on October 23, 2024 and sell it today you would earn a total of 191.00 from holding Qijing Machinery or generate 15.1% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Qijing Machinery |
| Wuhan Yangtze Commun |
Qijing Machinery and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Wuhan Yangtze
The main advantage of trading using opposite Qijing Machinery and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Qijing Machinery vs. Wuhan Yangtze Communication | Qijing Machinery vs. Bank of Communications | Qijing Machinery vs. China Publishing Media | Qijing Machinery vs. China Satellite Communications |
| Wuhan Yangtze vs. Shanghai CEO Environmental | Wuhan Yangtze vs. Shanghai Yaoji Playing | Wuhan Yangtze vs. Cicc Fund Management | Wuhan Yangtze vs. Guangzhou Tinci Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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