Correlation Between Qijing Machinery and Dow Jones
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By analyzing existing cross correlation between Qijing Machinery and Dow Jones Industrial, you can compare the effects of market volatilities on Qijing Machinery and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Dow Jones.
Diversification Opportunities for Qijing Machinery and Dow Jones
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Dow is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Dow Jones go up and down completely randomly.
Pair Corralation between Qijing Machinery and Dow Jones
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 3.85 times more return on investment than Dow Jones. However, Qijing Machinery is 3.85 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 1,089 in Qijing Machinery on November 3, 2024 and sell it today you would earn a total of 291.00 from holding Qijing Machinery or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.2% |
| Values | Daily Returns |
Qijing Machinery vs. Dow Jones Industrial
Performance |
| Timeline |
Qijing Machinery and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Qijing Machinery
Pair trading matchups for Qijing Machinery
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Qijing Machinery and Dow Jones
The main advantage of trading using opposite Qijing Machinery and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. Kweichow Moutai Co | Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. China Mobile Limited |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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