Correlation Between XinJiang GuoTong and Xinjiang Communications
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Xinjiang Communications Construction, you can compare the effects of market volatilities on XinJiang GuoTong and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Xinjiang Communications.
Diversification Opportunities for XinJiang GuoTong and Xinjiang Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Xinjiang Communications go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Xinjiang Communications
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, XinJiang GuoTong Pipeline is 1.07 times less risky than Xinjiang Communications. The stock trades about -0.01 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,138 in Xinjiang Communications Construction on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Xinjiang Communications Construction or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Xinjiang Communications Constr
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Xinjiang Communications |
XinJiang GuoTong and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Xinjiang Communications
The main advantage of trading using opposite XinJiang GuoTong and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong vs. Bank of China |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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