Correlation Between XinJiang GuoTong and Huizhou Desay
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Huizhou Desay SV, you can compare the effects of market volatilities on XinJiang GuoTong and Huizhou Desay 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 Huizhou Desay. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Huizhou Desay.
Diversification Opportunities for XinJiang GuoTong and Huizhou Desay
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XinJiang and Huizhou is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Huizhou Desay SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Desay SV 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 Huizhou Desay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Desay SV has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Huizhou Desay go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Huizhou Desay
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Huizhou Desay. In addition to that, XinJiang GuoTong is 2.2 times more volatile than Huizhou Desay SV. It trades about -0.26 of its total potential returns per unit of risk. Huizhou Desay SV is currently generating about -0.26 per unit of volatility. If you would invest 11,500 in Huizhou Desay SV on October 15, 2024 and sell it today you would lose (1,285) from holding Huizhou Desay SV or give up 11.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Huizhou Desay SV
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Huizhou Desay SV |
XinJiang GuoTong and Huizhou Desay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Huizhou Desay
The main advantage of trading using opposite XinJiang GuoTong and Huizhou Desay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Huizhou Desay 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 Huizhou Desay will offset losses from the drop in Huizhou Desay'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 |
| Huizhou Desay vs. Silkroad Visual Technology | Huizhou Desay vs. Zhengping RoadBridge Constr | Huizhou Desay vs. XinJiang GuoTong Pipeline | Huizhou Desay vs. Anshan Senyuan Road |
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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