Correlation Between Xiangtan Electrochemical and Xinjiang Tianrun
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Xiangtan Electrochemical 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 Xiangtan Electrochemical with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Xinjiang Tianrun.
Diversification Opportunities for Xiangtan Electrochemical and Xinjiang Tianrun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangtan and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien 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 Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific 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 Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Xinjiang Tianrun
Assuming the 90 days trading horizon Xiangtan Electrochemical is expected to generate 1.31 times less return on investment than Xinjiang Tianrun. In addition to that, Xiangtan Electrochemical is 1.19 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.16 of its total potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.26 per unit of volatility. If you would invest 702.00 in Xinjiang Tianrun Dairy on September 12, 2024 and sell it today you would earn a total of 354.00 from holding Xinjiang Tianrun Dairy or generate 50.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Xinjiang Tianrun Dairy |
Xiangtan Electrochemical and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Xinjiang Tianrun
The main advantage of trading using opposite Xiangtan Electrochemical and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical 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.| Xiangtan Electrochemical vs. Zijin Mining Group | Xiangtan Electrochemical vs. Wanhua Chemical Group | Xiangtan Electrochemical vs. Baoshan Iron Steel | Xiangtan Electrochemical vs. Rongsheng Petrochemical Co |
| Xinjiang Tianrun vs. Agricultural Bank of | Xinjiang Tianrun vs. Industrial and Commercial | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. PetroChina Co Ltd |
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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