Correlation Between Xinxiang Chemical and North Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinxiang Chemical Fiber and North Copper Shanxi, you can compare the effects of market volatilities on Xinxiang Chemical and North Copper 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 Xinxiang Chemical with a short position of North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and North Copper.
Diversification Opportunities for Xinxiang Chemical and North Copper
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinxiang and North is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi and Xinxiang Chemical 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 Xinxiang Chemical Fiber are associated (or correlated) with North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and North Copper go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and North Copper
Assuming the 90 days trading horizon Xinxiang Chemical is expected to generate 1.83 times less return on investment than North Copper. But when comparing it to its historical volatility, Xinxiang Chemical Fiber is 1.08 times less risky than North Copper. It trades about 0.03 of its potential returns per unit of risk. North Copper Shanxi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 614.00 in North Copper Shanxi on October 16, 2024 and sell it today you would earn a total of 335.00 from holding North Copper Shanxi or generate 54.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. North Copper Shanxi
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| North Copper Shanxi |
Xinxiang Chemical and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and North Copper
The main advantage of trading using opposite Xinxiang Chemical and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| Xinxiang Chemical vs. Anji Foodstuff Co | Xinxiang Chemical vs. Nexchip Semiconductor Corp | Xinxiang Chemical vs. JuneYao Dairy Co | Xinxiang Chemical vs. Guangdong Marubi Biotechnology |
| North Copper vs. CSSC Offshore Marine | North Copper vs. Caihong Display Devices | North Copper vs. Aba Chemicals Corp | North Copper vs. Hubei Xingfa Chemicals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |