Correlation Between Qijing Machinery and Nanjing OLO
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By analyzing existing cross correlation between Qijing Machinery and Nanjing OLO Home, you can compare the effects of market volatilities on Qijing Machinery and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Nanjing OLO.
Diversification Opportunities for Qijing Machinery and Nanjing OLO
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qijing and Nanjing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Nanjing OLO go up and down completely randomly.
Pair Corralation between Qijing Machinery and Nanjing OLO
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.46 times more return on investment than Nanjing OLO. However, Qijing Machinery is 1.46 times more volatile than Nanjing OLO Home. It trades about 0.19 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.01 per unit of risk. If you would invest 1,290 in Qijing Machinery on October 23, 2024 and sell it today you would earn a total of 166.00 from holding Qijing Machinery or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Nanjing OLO Home
Performance |
| Timeline |
| Qijing Machinery |
| Nanjing OLO Home |
Qijing Machinery and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Nanjing OLO
The main advantage of trading using opposite Qijing Machinery and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO'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 |
| Nanjing OLO vs. Huasi Agricultural Development | Nanjing OLO vs. Ningbo Construction Co | Nanjing OLO vs. Qijing Machinery | Nanjing OLO vs. China Sports Industry |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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