Correlation Between Pembina Pipeline and Qingling Motors
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and Qingling Motors at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pembina Pipeline and Qingling Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Qingling Motors Co, you can compare the effects of market volatilities on Pembina Pipeline and Qingling Motors 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 Pembina Pipeline with a short position of Qingling Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Qingling Motors.
Diversification Opportunities for Pembina Pipeline and Qingling Motors
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembina and Qingling is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Qingling Motors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingling Motors and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with Qingling Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingling Motors has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Qingling Motors go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Qingling Motors
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.68 times more return on investment than Qingling Motors. However, Pembina Pipeline Corp is 1.48 times less risky than Qingling Motors. It trades about 0.23 of its potential returns per unit of risk. Qingling Motors Co is currently generating about -0.08 per unit of risk. If you would invest 3,474 in Pembina Pipeline Corp on October 24, 2024 and sell it today you would earn a total of 147.00 from holding Pembina Pipeline Corp or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Qingling Motors Co
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Qingling Motors |
Pembina Pipeline and Qingling Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Qingling Motors
The main advantage of trading using opposite Pembina Pipeline and Qingling Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Qingling Motors 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 Qingling Motors will offset losses from the drop in Qingling Motors' long position.The idea behind Pembina Pipeline Corp and Qingling Motors Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Qingling Motors vs. AAC TECHNOLOGHLDGADR | Qingling Motors vs. AWILCO DRILLING PLC | Qingling Motors vs. VELA TECHNOLPLC LS 0001 | Qingling Motors vs. Pembina Pipeline Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |