Correlation Between Lutian Machinery and Qijing Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lutian Machinery Co and Qijing Machinery, you can compare the effects of market volatilities on Lutian Machinery and Qijing 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 Lutian Machinery with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Qijing Machinery.
Diversification Opportunities for Lutian Machinery and Qijing Machinery
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lutian and Qijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Lutian 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 Lutian Machinery Co are associated (or correlated) with Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Qijing Machinery go up and down completely randomly.
Pair Corralation between Lutian Machinery and Qijing Machinery
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.5 times more return on investment than Qijing Machinery. However, Lutian Machinery Co is 1.98 times less risky than Qijing Machinery. It trades about -0.15 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.11 per unit of risk. If you would invest 1,590 in Lutian Machinery Co on October 12, 2024 and sell it today you would lose (86.00) from holding Lutian Machinery Co or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Qijing Machinery
Performance |
| Timeline |
| Lutian Machinery |
| Qijing Machinery |
Lutian Machinery and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Qijing Machinery
The main advantage of trading using opposite Lutian Machinery and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Qijing 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| Lutian Machinery vs. Xiamen Jihong Package | Lutian Machinery vs. Youyou Foods Co | Lutian Machinery vs. Jinhui Liquor Co | Lutian Machinery vs. Zhangjiagang Freetrade Science |
| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |