Correlation Between North Huajin and Xilong Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between North Huajin Chemical and Xilong Chemical Co, you can compare the effects of market volatilities on North Huajin and Xilong Chemical 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 North Huajin with a short position of Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Xilong Chemical.
Diversification Opportunities for North Huajin and Xilong Chemical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Xilong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical and North Huajin 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 North Huajin Chemical are associated (or correlated) with Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of North Huajin i.e., North Huajin and Xilong Chemical go up and down completely randomly.
Pair Corralation between North Huajin and Xilong Chemical
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Xilong Chemical. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.03 times less risky than Xilong Chemical. The stock trades about -0.03 of its potential returns per unit of risk. The Xilong Chemical Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 775.00 in Xilong Chemical Co on August 28, 2024 and sell it today you would earn a total of 28.00 from holding Xilong Chemical Co or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Xilong Chemical Co
Performance |
| Timeline |
| North Huajin Chemical |
| Xilong Chemical |
North Huajin and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Xilong Chemical
The main advantage of trading using opposite North Huajin and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Xilong Chemical vs. Zijin Mining Group | Xilong Chemical vs. Wanhua Chemical Group | Xilong Chemical vs. Baoshan Iron Steel | Xilong Chemical vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |