Correlation Between XinJiang GuoTong and Zhejiang Century
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Zhejiang Century Huatong, you can compare the effects of market volatilities on XinJiang GuoTong and Zhejiang Century 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 Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Zhejiang Century.
Diversification Opportunities for XinJiang GuoTong and Zhejiang Century
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XinJiang and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong 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 Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Zhejiang Century go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Zhejiang Century
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 0.89 times more return on investment than Zhejiang Century. However, XinJiang GuoTong Pipeline is 1.13 times less risky than Zhejiang Century. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about -0.1 per unit of risk. If you would invest 956.00 in XinJiang GuoTong Pipeline on September 12, 2024 and sell it today you would lose (7.00) from holding XinJiang GuoTong Pipeline or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Zhejiang Century Huatong
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Zhejiang Century Huatong |
XinJiang GuoTong and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Zhejiang Century
The main advantage of trading using opposite XinJiang GuoTong and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Zhejiang Century 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 Zhejiang Century will offset losses from the drop in Zhejiang Century's long position.| XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Bank of China | XinJiang GuoTong vs. PetroChina Co Ltd |
| Zhejiang Century vs. StarPower Semiconductor | Zhejiang Century vs. Ningbo Tip Rubber | Zhejiang Century vs. Tianjin Pengling Rubber | Zhejiang Century vs. Heilongjiang Transport Development |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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