Correlation Between Qijing Machinery and Oppein Home
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By analyzing existing cross correlation between Qijing Machinery and Oppein Home Group, you can compare the effects of market volatilities on Qijing Machinery and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Oppein Home.
Diversification Opportunities for Qijing Machinery and Oppein Home
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qijing and Oppein is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Oppein Home go up and down completely randomly.
Pair Corralation between Qijing Machinery and Oppein Home
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.55 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Qijing Machinery is 1.15 times less risky than Oppein Home. It trades about 0.08 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,283 in Oppein Home Group on October 25, 2024 and sell it today you would earn a total of 1,986 from holding Oppein Home Group or generate 46.37% 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. Oppein Home Group
Performance |
| Timeline |
| Qijing Machinery |
| Oppein Home Group |
Qijing Machinery and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Oppein Home
The main advantage of trading using opposite Qijing Machinery and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Qijing Machinery vs. Xinjiang Communications Construction | Qijing Machinery vs. Jilin Jlu Communication | Qijing Machinery vs. State Grid InformationCommunication | Qijing Machinery vs. Dr Peng Telecom |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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