Correlation Between XinJiang GuoTong and Fujian Wanchen
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on XinJiang GuoTong and Fujian Wanchen 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 Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Fujian Wanchen.
Diversification Opportunities for XinJiang GuoTong and Fujian Wanchen
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Fujian is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Fujian Wanchen go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Fujian Wanchen
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Fujian Wanchen. In addition to that, XinJiang GuoTong is 1.59 times more volatile than Fujian Wanchen Biotechnology. It trades about -0.26 of its total potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about -0.03 per unit of volatility. If you would invest 7,922 in Fujian Wanchen Biotechnology on October 16, 2024 and sell it today you would lose (187.00) from holding Fujian Wanchen Biotechnology or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Fujian Wanchen Biote |
XinJiang GuoTong and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Fujian Wanchen
The main advantage of trading using opposite XinJiang GuoTong and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Fujian Wanchen 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 Wanchen will offset losses from the drop in Fujian Wanchen's long position.| XinJiang GuoTong vs. Guangdong Transtek Medical | XinJiang GuoTong vs. Dongguan Tarry Electronics | XinJiang GuoTong vs. CareRay Digital Medical | XinJiang GuoTong vs. Allmed Medical Products |
| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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