Correlation Between Invesco QQQ and China Yuchai
Can any of the company-specific risk be diversified away by investing in both Invesco QQQ and China Yuchai 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 Invesco QQQ and China Yuchai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco QQQ Trust and China Yuchai International, you can compare the effects of market volatilities on Invesco QQQ and China Yuchai 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 Invesco QQQ with a short position of China Yuchai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco QQQ and China Yuchai.
Diversification Opportunities for Invesco QQQ and China Yuchai
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and China is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Invesco QQQ Trust and China Yuchai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yuchai Interna and Invesco QQQ 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 Invesco QQQ Trust are associated (or correlated) with China Yuchai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yuchai Interna has no effect on the direction of Invesco QQQ i.e., Invesco QQQ and China Yuchai go up and down completely randomly.
Pair Corralation between Invesco QQQ and China Yuchai
Considering the 90-day investment horizon Invesco QQQ is expected to generate 1.22 times less return on investment than China Yuchai. But when comparing it to its historical volatility, Invesco QQQ Trust is 3.23 times less risky than China Yuchai. It trades about 0.13 of its potential returns per unit of risk. China Yuchai International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,294 in China Yuchai International on August 30, 2025 and sell it today you would earn a total of 238.00 from holding China Yuchai International or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco QQQ Trust vs. China Yuchai International
Performance |
| Timeline |
| Invesco QQQ Trust |
| China Yuchai Interna |
Invesco QQQ and China Yuchai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco QQQ and China Yuchai
The main advantage of trading using opposite Invesco QQQ and China Yuchai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco QQQ position performs unexpectedly, China Yuchai 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 China Yuchai will offset losses from the drop in China Yuchai's long position.| Invesco QQQ vs. iShares Russell 1000 | Invesco QQQ vs. iShares Russell Top | Invesco QQQ vs. Vanguard Mega Cap | Invesco QQQ vs. Invesco SP 500 |
| China Yuchai vs. Mitsui Chemicals ADR | China Yuchai vs. SD Standard Drilling | China Yuchai vs. Electronic Arts | China Yuchai vs. Kimball Electronics |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |