Correlation Between Shaanxi Meineng and Xinjiang Tianrun
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Shaanxi Meineng and Xinjiang Tianrun 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 Shaanxi Meineng with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Xinjiang Tianrun.
Diversification Opportunities for Shaanxi Meineng and Xinjiang Tianrun
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Xinjiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Xinjiang Tianrun
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.53 times more return on investment than Xinjiang Tianrun. However, Shaanxi Meineng is 1.53 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.0 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 1,584 in Shaanxi Meineng Clean on September 12, 2024 and sell it today you would lose (215.00) from holding Shaanxi Meineng Clean or give up 13.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Xinjiang Tianrun Dairy |
Shaanxi Meineng and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Xinjiang Tianrun
The main advantage of trading using opposite Shaanxi Meineng and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Shaanxi Meineng vs. Gansu Jiu Steel | Shaanxi Meineng vs. Shandong Mining Machinery | Shaanxi Meineng vs. Aba Chemicals Corp | Shaanxi Meineng vs. BlueFocus Communication Group |
| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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