Correlation Between Hunan Investment and Xinjiang Tianrun
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By analyzing existing cross correlation between Hunan Investment Group and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Hunan Investment and Xinjiang Tianrun 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 Hunan Investment with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Xinjiang Tianrun.
Diversification Opportunities for Hunan Investment and Xinjiang Tianrun
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Xinjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Hunan Investment i.e., Hunan Investment and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Hunan Investment and Xinjiang Tianrun
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Xinjiang Tianrun. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 1.16 times less risky than Xinjiang Tianrun. The stock trades about -0.46 of its potential returns per unit of risk. The Xinjiang Tianrun Dairy is currently generating about -0.39 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Xinjiang Tianrun Dairy on October 16, 2024 and sell it today you would lose (204.00) from holding Xinjiang Tianrun Dairy or give up 19.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Hunan Investment |
| Xinjiang Tianrun Dairy |
Hunan Investment and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Xinjiang Tianrun
The main advantage of trading using opposite Hunan Investment and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Hunan Investment vs. GuoChuang Software Co | Hunan Investment vs. Bomesc Offshore Engineering | Hunan Investment vs. Guotai Epoint Software | Hunan Investment vs. Northern United Publishing |
| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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