Correlation Between APT Medical and Qijing Machinery
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By analyzing existing cross correlation between APT Medical and Qijing Machinery, you can compare the effects of market volatilities on APT Medical 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 APT Medical with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Qijing Machinery.
Diversification Opportunities for APT Medical and Qijing Machinery
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APT and Qijing is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and APT Medical 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 APT Medical 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 APT Medical i.e., APT Medical and Qijing Machinery go up and down completely randomly.
Pair Corralation between APT Medical and Qijing Machinery
Assuming the 90 days trading horizon APT Medical is expected to generate 3.07 times less return on investment than Qijing Machinery. In addition to that, APT Medical is 1.35 times more volatile than Qijing Machinery. It trades about 0.04 of its total potential returns per unit of risk. Qijing Machinery is currently generating about 0.17 per unit of volatility. If you would invest 1,012 in Qijing Machinery on September 2, 2024 and sell it today you would earn a total of 307.00 from holding Qijing Machinery or generate 30.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Qijing Machinery
Performance |
| Timeline |
| APT Medical |
| Qijing Machinery |
APT Medical and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Qijing Machinery
The main advantage of trading using opposite APT Medical and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical 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.| APT Medical vs. Nanjing Putian Telecommunications | APT Medical vs. Shenzhen Hifuture Electric | APT Medical vs. Tianjin Realty Development | APT Medical vs. Shenyang Huitian Thermal |
| Qijing Machinery vs. Cultural Investment Holdings | Qijing Machinery vs. Gome Telecom Equipment | Qijing Machinery vs. Bus Online Co | Qijing Machinery vs. Zotye Automobile Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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