Correlation Between Xinjiang Zhongtai and Wintao Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Zhongtai Chemical and Wintao Communications Co, you can compare the effects of market volatilities on Xinjiang Zhongtai and Wintao Communications 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 Xinjiang Zhongtai with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Zhongtai and Wintao Communications.
Diversification Opportunities for Xinjiang Zhongtai and Wintao Communications
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Wintao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Zhongtai Chemical and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Xinjiang Zhongtai 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 Xinjiang Zhongtai Chemical are associated (or correlated) with Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Xinjiang Zhongtai i.e., Xinjiang Zhongtai and Wintao Communications go up and down completely randomly.
Pair Corralation between Xinjiang Zhongtai and Wintao Communications
Assuming the 90 days trading horizon Xinjiang Zhongtai is expected to generate 1.07 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, Xinjiang Zhongtai Chemical is 1.18 times less risky than Wintao Communications. It trades about 0.28 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,216 in Wintao Communications Co on September 5, 2024 and sell it today you would earn a total of 360.00 from holding Wintao Communications Co or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Zhongtai Chemical vs. Wintao Communications Co
Performance |
| Timeline |
| Xinjiang Zhongtai |
| Wintao Communications |
Xinjiang Zhongtai and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Zhongtai and Wintao Communications
The main advantage of trading using opposite Xinjiang Zhongtai and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Zhongtai position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai vs. Shandong Gold Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |