Correlation Between Shyft and Qingling Motors

Can any of the company-specific risk be diversified away by investing in both Shyft 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 Shyft and Qingling Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Shyft Group and Qingling Motors Co, you can compare the effects of market volatilities on Shyft 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 Shyft with a short position of Qingling Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and Qingling Motors.

Diversification Opportunities for Shyft and Qingling Motors

-0.37

Correlation Coefficient

Shyft  Qingling Motors

Very good diversification

The 3 months correlation between Shyft and Qingling is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Shyft Group and Qingling Motors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingling Motors and Shyft 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 The Shyft Group 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 Shyft i.e., Shyft and Qingling Motors go up and down completely randomly.

Pair Corralation between Shyft and Qingling Motors

Assuming the 90 days horizon The Shyft Group is expected to under-perform the Qingling Motors. In addition to that, Shyft is 3.44 times more volatile than Qingling Motors Co. It trades about -0.04 of its total potential returns per unit of risk. Qingling Motors Co is currently generating about 0.23 per unit of volatility. If you would invest  5.06  in Qingling Motors Co on April 22, 2025 and sell it today you would earn a total of  3.56  from holding Qingling Motors Co or generate 70.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

The Shyft Group  vs.  Qingling Motors Co

Shyft Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Shyft Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Qingling Motors

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qingling Motors Co are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Qingling Motors reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shyft and Qingling Motors

The main advantage of trading using opposite Shyft and Qingling Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft 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 The Shyft Group 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.