Correlation Between Xinxiang Chemical and Guangdong Xiongsu
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By analyzing existing cross correlation between Xinxiang Chemical Fiber and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Xinxiang Chemical and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Guangdong Xiongsu.
Diversification Opportunities for Xinxiang Chemical and Guangdong Xiongsu
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinxiang and Guangdong is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Guangdong Xiongsu
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 0.68 times more return on investment than Guangdong Xiongsu. However, Xinxiang Chemical Fiber is 1.48 times less risky than Guangdong Xiongsu. It trades about -0.01 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.26 per unit of risk. If you would invest 413.00 in Xinxiang Chemical Fiber on October 30, 2024 and sell it today you would lose (3.00) from holding Xinxiang Chemical Fiber or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| Guangdong Xiongsu |
Xinxiang Chemical and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and Guangdong Xiongsu
The main advantage of trading using opposite Xinxiang Chemical and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Xinxiang Chemical vs. Jinhui Mining Co | Xinxiang Chemical vs. Ningbo Construction Co | Xinxiang Chemical vs. Uroica Mining Safety | Xinxiang Chemical vs. Gifore Agricultural Machinery |
| Guangdong Xiongsu vs. Jiangxi Hengda Hi Tech | Guangdong Xiongsu vs. China Sports Industry | Guangdong Xiongsu vs. Beijing Seeyon Internet | Guangdong Xiongsu vs. Kuang Chi Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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