Correlation Between Gansu Huangtai and Xinjiang Tianshun
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Gansu Huangtai and Xinjiang Tianshun 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 Gansu Huangtai with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Xinjiang Tianshun.
Diversification Opportunities for Gansu Huangtai and Xinjiang Tianshun
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Xinjiang is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Xinjiang Tianshun
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.97 times more return on investment than Xinjiang Tianshun. However, Gansu Huangtai is 1.97 times more volatile than Xinjiang Tianshun Supply. It trades about -0.01 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.14 per unit of risk. If you would invest 1,674 in Gansu Huangtai Wine marketing on October 25, 2024 and sell it today you would lose (63.00) from holding Gansu Huangtai Wine marketing or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Xinjiang Tianshun Supply |
Gansu Huangtai and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Xinjiang Tianshun
The main advantage of trading using opposite Gansu Huangtai and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Gansu Huangtai vs. Agricultural Bank of | Gansu Huangtai vs. Postal Savings Bank | Gansu Huangtai vs. Bank of Communications | Gansu Huangtai vs. China Merchants Bank |
| Xinjiang Tianshun vs. Gansu Huangtai Wine marketing | Xinjiang Tianshun vs. Hainan Airlines Co | Xinjiang Tianshun vs. Jiangsu Yanghe Brewery | Xinjiang Tianshun vs. Spring Airlines Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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