Correlation Between Qijing Machinery and Allied Machinery
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By analyzing existing cross correlation between Qijing Machinery and Allied Machinery Co, you can compare the effects of market volatilities on Qijing Machinery and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Allied Machinery.
Diversification Opportunities for Qijing Machinery and Allied Machinery
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qijing and Allied is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Allied Machinery go up and down completely randomly.
Pair Corralation between Qijing Machinery and Allied Machinery
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.03 times more return on investment than Allied Machinery. However, Qijing Machinery is 1.03 times more volatile than Allied Machinery Co. It trades about 0.03 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.02 per unit of risk. If you would invest 1,164 in Qijing Machinery on September 4, 2024 and sell it today you would earn a total of 203.00 from holding Qijing Machinery or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Allied Machinery Co
Performance |
| Timeline |
| Qijing Machinery |
| Allied Machinery |
Qijing Machinery and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Allied Machinery
The main advantage of trading using opposite Qijing Machinery and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. China Mobile Limited | Qijing Machinery vs. CNOOC Limited | Qijing Machinery vs. Ping An Insurance |
| Allied Machinery vs. Chengdu Kanghua Biological | Allied Machinery vs. Beijing Wantai Biological | Allied Machinery vs. Suzhou Novoprotein Scientific | Allied Machinery vs. Aluminum Corp of |
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 CEOs Directory module to screen CEOs from public companies around the world.
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