Correlation Between XinJiang GuoTong and Ningxia Younglight
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on XinJiang GuoTong and Ningxia Younglight 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 GuoTong with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Ningxia Younglight.
Diversification Opportunities for XinJiang GuoTong and Ningxia Younglight
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Ningxia is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and XinJiang GuoTong 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 GuoTong Pipeline are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Ningxia Younglight go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Ningxia Younglight
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.01 times more return on investment than Ningxia Younglight. However, XinJiang GuoTong is 1.01 times more volatile than Ningxia Younglight Chemicals. It trades about -0.01 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.02 per unit of risk. If you would invest 870.00 in XinJiang GuoTong Pipeline on October 26, 2024 and sell it today you would lose (54.00) from holding XinJiang GuoTong Pipeline or give up 6.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Ningxia Younglight |
XinJiang GuoTong and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Ningxia Younglight
The main advantage of trading using opposite XinJiang GuoTong and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| XinJiang GuoTong vs. Ming Yang Smart | XinJiang GuoTong vs. 159681 | XinJiang GuoTong vs. 159005 | XinJiang GuoTong vs. Loctek Ergonomic Technology |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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