Correlation Between Hengli Industrial and Xinjiang Tianrun
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By analyzing existing cross correlation between Hengli Industrial Development and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Xinjiang Tianrun.
Diversification Opportunities for Hengli Industrial and Xinjiang Tianrun
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Xinjiang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Hengli Industrial and Xinjiang Tianrun
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.54 times more return on investment than Xinjiang Tianrun. However, Hengli Industrial is 1.54 times more volatile than Xinjiang Tianrun Dairy. It trades about -0.03 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 456.00 in Hengli Industrial Development on October 15, 2024 and sell it today you would lose (231.00) from holding Hengli Industrial Development or give up 50.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Hengli Industrial |
| Xinjiang Tianrun Dairy |
Hengli Industrial and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Xinjiang Tianrun
The main advantage of trading using opposite Hengli Industrial and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. Shanghai Material Trading | Hengli Industrial vs. Jointo Energy Investment | Hengli Industrial vs. Beijing Mainstreets Investment | Hengli Industrial vs. Hubei Geoway Investment |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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