Correlation Between Western Metal and Qijing Machinery
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By analyzing existing cross correlation between Western Metal Materials and Qijing Machinery, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Qijing Machinery.
Diversification Opportunities for Western Metal and Qijing Machinery
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and Qijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Qijing Machinery go up and down completely randomly.
Pair Corralation between Western Metal and Qijing Machinery
Assuming the 90 days trading horizon Western Metal is expected to generate 1.66 times less return on investment than Qijing Machinery. In addition to that, Western Metal is 1.01 times more volatile than Qijing Machinery. It trades about 0.13 of its total potential returns per unit of risk. Qijing Machinery is currently generating about 0.21 per unit of volatility. If you would invest 1,015 in Qijing Machinery on September 16, 2024 and sell it today you would earn a total of 444.00 from holding Qijing Machinery or generate 43.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Western Metal Materials vs. Qijing Machinery
Performance |
Timeline |
Western Metal Materials |
Qijing Machinery |
Western Metal and Qijing Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Metal and Qijing Machinery
The main advantage of trading using opposite Western Metal and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
Qijing Machinery vs. Kangping Technology Co | Qijing Machinery vs. Hangzhou Zhongya Machinery | Qijing Machinery vs. INKON Life Technology | Qijing Machinery vs. Xingguang Agricultural Mach |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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