Correlation Between Qijing Machinery and Shandong Gold
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By analyzing existing cross correlation between Qijing Machinery and Shandong Gold Mining, you can compare the effects of market volatilities on Qijing Machinery and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Shandong Gold.
Diversification Opportunities for Qijing Machinery and Shandong Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qijing and Shandong is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Shandong Gold go up and down completely randomly.
Pair Corralation between Qijing Machinery and Shandong Gold
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 2.24 times more return on investment than Shandong Gold. However, Qijing Machinery is 2.24 times more volatile than Shandong Gold Mining. It trades about -0.05 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.37 per unit of risk. If you would invest 1,359 in Qijing Machinery on August 31, 2024 and sell it today you would lose (56.00) from holding Qijing Machinery or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Shandong Gold Mining
Performance |
| Timeline |
| Qijing Machinery |
| Shandong Gold Mining |
Qijing Machinery and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Shandong Gold
The main advantage of trading using opposite Qijing Machinery and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Qijing Machinery vs. Kweichow Moutai Co | Qijing Machinery vs. NAURA Technology Group | Qijing Machinery vs. APT Medical | Qijing Machinery vs. Contemporary Amperex Technology |
| Shandong Gold vs. Qijing Machinery | Shandong Gold vs. Rising Nonferrous Metals | Shandong Gold vs. Henzhen Zhaowei Machinery | Shandong Gold vs. Gifore Agricultural 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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