Correlation Between Qi An and China National
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By analyzing existing cross correlation between Qi An Xin and China National Software, you can compare the effects of market volatilities on Qi An and China National 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 Qi An with a short position of China National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qi An and China National.
Diversification Opportunities for Qi An and China National
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 688561 and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qi An Xin and China National Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China National Software and Qi An 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 Qi An Xin are associated (or correlated) with China National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China National Software has no effect on the direction of Qi An i.e., Qi An and China National go up and down completely randomly.
Pair Corralation between Qi An and China National
Assuming the 90 days trading horizon Qi An Xin is expected to under-perform the China National. But the stock apears to be less risky and, when comparing its historical volatility, Qi An Xin is 1.09 times less risky than China National. The stock trades about -0.05 of its potential returns per unit of risk. The China National Software is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,530 in China National Software on August 29, 2024 and sell it today you would earn a total of 690.00 from holding China National Software or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qi An Xin vs. China National Software
Performance |
| Timeline |
| Qi An Xin |
| China National Software |
Qi An and China National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qi An and China National
The main advantage of trading using opposite Qi An and China National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qi An position performs unexpectedly, China National 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 China National will offset losses from the drop in China National's long position.| Qi An vs. Jinhe Biotechnology Co | Qi An vs. Shandong Sanyuan Biotechnology | Qi An vs. Guangzhou KingTeller Technology | Qi An vs. CGN Nuclear Technology |
| China National vs. Agricultural Bank of | China National vs. Industrial and Commercial | China National vs. Bank of China | China National vs. PetroChina Co Ltd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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