Correlation Between Henan Shuanghui and XinJiang GuoTong
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By analyzing existing cross correlation between Henan Shuanghui Investment and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Henan Shuanghui and XinJiang GuoTong 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 Henan Shuanghui with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and XinJiang GuoTong.
Diversification Opportunities for Henan Shuanghui and XinJiang GuoTong
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Henan and XinJiang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Henan Shuanghui and XinJiang GuoTong
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.26 times more return on investment than XinJiang GuoTong. However, Henan Shuanghui Investment is 3.87 times less risky than XinJiang GuoTong. It trades about -0.18 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.16 per unit of risk. If you would invest 2,610 in Henan Shuanghui Investment on October 25, 2024 and sell it today you would lose (95.00) from holding Henan Shuanghui Investment or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Henan Shuanghui Inve |
| XinJiang GuoTong Pipeline |
Henan Shuanghui and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and XinJiang GuoTong
The main advantage of trading using opposite Henan Shuanghui and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Henan Shuanghui vs. XiaMen HongXin Electron tech | Henan Shuanghui vs. Dhc Software Co | Henan Shuanghui vs. Montage Technology Co | Henan Shuanghui vs. Changchun UP Optotech |
| XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. Beijing Roborock Technology | XinJiang GuoTong vs. BYD Co Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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