Correlation Between XinJiang GuoTong and Jiangsu Yanghe
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on XinJiang GuoTong and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Jiangsu Yanghe.
Diversification Opportunities for XinJiang GuoTong and Jiangsu Yanghe
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Jiangsu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Jiangsu Yanghe
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Jiangsu Yanghe. In addition to that, XinJiang GuoTong is 2.82 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.08 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.13 per unit of volatility. If you would invest 8,071 in Jiangsu Yanghe Brewery on October 30, 2024 and sell it today you would lose (231.00) from holding Jiangsu Yanghe Brewery or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Jiangsu Yanghe Brewery |
XinJiang GuoTong and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Jiangsu Yanghe
The main advantage of trading using opposite XinJiang GuoTong and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| XinJiang GuoTong vs. Jiangsu Financial Leasing | XinJiang GuoTong vs. East Money Information | XinJiang GuoTong vs. Rising Nonferrous Metals | XinJiang GuoTong vs. Emdoor Information Co |
| Jiangsu Yanghe vs. Shanghai Broadband Technology | Jiangsu Yanghe vs. Hunan TV Broadcast | Jiangsu Yanghe vs. Anhui Deli Household | Jiangsu Yanghe vs. Anhui Transport Consulting |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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