Correlation Between XinJiang GuoTong and Dongguan Tarry
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Dongguan Tarry Electronics, you can compare the effects of market volatilities on XinJiang GuoTong and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Dongguan Tarry.
Diversification Opportunities for XinJiang GuoTong and Dongguan Tarry
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Dongguan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Dongguan Tarry go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Dongguan Tarry
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.56 times more return on investment than Dongguan Tarry. However, XinJiang GuoTong is 1.56 times more volatile than Dongguan Tarry Electronics. It trades about 0.06 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about -0.02 per unit of risk. If you would invest 920.00 in XinJiang GuoTong Pipeline on January 2, 2025 and sell it today you would earn a total of 26.00 from holding XinJiang GuoTong Pipeline or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Dongguan Tarry Elect |
XinJiang GuoTong and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Dongguan Tarry
The main advantage of trading using opposite XinJiang GuoTong and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| XinJiang GuoTong vs. Southern PublishingMedia Co | XinJiang GuoTong vs. Jiangsu Phoenix Publishing | XinJiang GuoTong vs. Jiangsu Xinri E Vehicle | XinJiang GuoTong vs. Time Publishing and |
| Dongguan Tarry vs. Cicc Fund Management | Dongguan Tarry vs. Guangdong Silvere Sci | Dongguan Tarry vs. Shenzhen Silver Basis | Dongguan Tarry vs. Inner Mongolia Xingye |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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