Correlation Between Xinxiang Chemical and Zhonghong Pulin
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By analyzing existing cross correlation between Xinxiang Chemical Fiber and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Xinxiang Chemical and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Zhonghong Pulin.
Diversification Opportunities for Xinxiang Chemical and Zhonghong Pulin
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinxiang and Zhonghong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Zhonghong Pulin
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 0.96 times more return on investment than Zhonghong Pulin. However, Xinxiang Chemical Fiber is 1.04 times less risky than Zhonghong Pulin. It trades about 0.03 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.0 per unit of risk. If you would invest 340.00 in Xinxiang Chemical Fiber on October 14, 2024 and sell it today you would earn a total of 57.00 from holding Xinxiang Chemical Fiber or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| Zhonghong Pulin Medical |
Xinxiang Chemical and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and Zhonghong Pulin
The main advantage of trading using opposite Xinxiang Chemical and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Xinxiang Chemical vs. Xinjiang Beixin RoadBridge | Xinxiang Chemical vs. China Eastern Airlines | Xinxiang Chemical vs. Dymatic Chemicals | Xinxiang Chemical vs. Xilong Chemical Co |
| Zhonghong Pulin vs. Liaoning Dingjide Petrochemical | Zhonghong Pulin vs. China Mobile Limited | Zhonghong Pulin vs. Xinxiang Chemical Fiber | Zhonghong Pulin vs. Longxing Chemical Stock |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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