Correlation Between Inner Mongolia and Xinjiang Communications
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By analyzing existing cross correlation between Inner Mongolia Yuan and Xinjiang Communications Construction, you can compare the effects of market volatilities on Inner Mongolia and Xinjiang Communications 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 Inner Mongolia with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xinjiang Communications.
Diversification Opportunities for Inner Mongolia and Xinjiang Communications
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Xinjiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Yuan and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Inner Mongolia 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 Inner Mongolia Yuan are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xinjiang Communications
Assuming the 90 days trading horizon Inner Mongolia is expected to generate 8.3 times less return on investment than Xinjiang Communications. But when comparing it to its historical volatility, Inner Mongolia Yuan is 1.19 times less risky than Xinjiang Communications. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 964.00 in Xinjiang Communications Construction on September 2, 2024 and sell it today you would earn a total of 316.00 from holding Xinjiang Communications Construction or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Yuan vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Inner Mongolia Yuan |
| Xinjiang Communications |
Inner Mongolia and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xinjiang Communications
The main advantage of trading using opposite Inner Mongolia and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Inner Mongolia vs. Jinhe Biotechnology Co | Inner Mongolia vs. Lootom Telcovideo Network | Inner Mongolia vs. Minmetals Capital Co | Inner Mongolia vs. Shenzhen Topway Video |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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