Correlation Between Qijing Machinery and Zhejiang Tailin
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By analyzing existing cross correlation between Qijing Machinery and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Qijing Machinery and Zhejiang Tailin 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 Qijing Machinery with a short position of Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Zhejiang Tailin.
Diversification Opportunities for Qijing Machinery and Zhejiang Tailin
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qijing and Zhejiang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe and Qijing 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 Qijing Machinery are associated (or correlated) with Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Qijing Machinery and Zhejiang Tailin
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.18 times more return on investment than Zhejiang Tailin. However, Qijing Machinery is 1.18 times more volatile than Zhejiang Tailin Bioengineering. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.06 per unit of risk. If you would invest 1,162 in Qijing Machinery on October 10, 2024 and sell it today you would earn a total of 98.00 from holding Qijing Machinery or generate 8.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Qijing Machinery vs. Zhejiang Tailin Bioengineering
Performance |
Timeline |
Qijing Machinery |
Zhejiang Tailin Bioe |
Qijing Machinery and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qijing Machinery and Zhejiang Tailin
The main advantage of trading using opposite Qijing Machinery and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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