Correlation Between XinJiang GuoTong and Marssenger Kitchenware
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Marssenger Kitchenware Co, you can compare the effects of market volatilities on XinJiang GuoTong and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Marssenger Kitchenware.
Diversification Opportunities for XinJiang GuoTong and Marssenger Kitchenware
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XinJiang and Marssenger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Marssenger Kitchenware
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 0.94 times more return on investment than Marssenger Kitchenware. However, XinJiang GuoTong Pipeline is 1.07 times less risky than Marssenger Kitchenware. It trades about 0.01 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.12 per unit of risk. If you would invest 870.00 in XinJiang GuoTong Pipeline on August 28, 2024 and sell it today you would lose (2.00) from holding XinJiang GuoTong Pipeline or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Marssenger Kitchenware |
XinJiang GuoTong and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Marssenger Kitchenware
The main advantage of trading using opposite XinJiang GuoTong and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| XinJiang GuoTong vs. Sichuan Fulin Transportation | XinJiang GuoTong vs. Dymatic Chemicals | XinJiang GuoTong vs. Ningxia Younglight Chemicals | XinJiang GuoTong vs. Anhui Transport Consulting |
| Marssenger Kitchenware vs. China Petroleum Chemical | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. China State Construction | Marssenger Kitchenware vs. China Railway Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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