Correlation Between XinJiang GuoTong and Fujian Longzhou
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Fujian Longzhou Transportation, you can compare the effects of market volatilities on XinJiang GuoTong and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Fujian Longzhou.
Diversification Opportunities for XinJiang GuoTong and Fujian Longzhou
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Fujian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Fujian Longzhou go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Fujian Longzhou
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.42 times more return on investment than Fujian Longzhou. However, XinJiang GuoTong is 1.42 times more volatile than Fujian Longzhou Transportation. It trades about -0.24 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.52 per unit of risk. If you would invest 1,010 in XinJiang GuoTong Pipeline on October 14, 2024 and sell it today you would lose (230.00) from holding XinJiang GuoTong Pipeline or give up 22.77% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Fujian Longzhou Tran |
XinJiang GuoTong and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Fujian Longzhou
The main advantage of trading using opposite XinJiang GuoTong and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| XinJiang GuoTong vs. Nanxing Furniture Machinery | XinJiang GuoTong vs. Digiwin Software Co | XinJiang GuoTong vs. Hunan Tyen Machinery | XinJiang GuoTong vs. Tianjin Ruixin Technology |
| Fujian Longzhou vs. Shanghai Shuixing Home | Fujian Longzhou vs. DO Home Collection | Fujian Longzhou vs. XinJiang GuoTong Pipeline | Fujian Longzhou vs. Jahen Household Products |
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 CEOs Directory module to screen CEOs from public companies around the world.
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