Correlation Between XinJiang GuoTong and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Gan Yuan Foods, you can compare the effects of market volatilities on XinJiang GuoTong and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Gan Yuan.
Diversification Opportunities for XinJiang GuoTong and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Gan Yuan go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Gan Yuan
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Gan Yuan. In addition to that, XinJiang GuoTong is 1.22 times more volatile than Gan Yuan Foods. It trades about -0.01 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.19 per unit of volatility. If you would invest 7,220 in Gan Yuan Foods on September 1, 2024 and sell it today you would earn a total of 638.00 from holding Gan Yuan Foods or generate 8.84% 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. Gan Yuan Foods
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Gan Yuan Foods |
XinJiang GuoTong and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Gan Yuan
The main advantage of trading using opposite XinJiang GuoTong and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's 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 |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Shenzhen Hifuture Electric | Gan Yuan vs. Tianjin Realty Development | Gan Yuan vs. Shenyang Huitian Thermal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |