Correlation Between XinJiang GuoTong and Wanhua Chemical
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Wanhua Chemical Group, you can compare the effects of market volatilities on XinJiang GuoTong and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Wanhua Chemical.
Diversification Opportunities for XinJiang GuoTong and Wanhua Chemical
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Wanhua is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Wanhua Chemical go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Wanhua Chemical
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 2.01 times more return on investment than Wanhua Chemical. However, XinJiang GuoTong is 2.01 times more volatile than Wanhua Chemical Group. It trades about 0.14 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.12 per unit of risk. If you would invest 778.00 in XinJiang GuoTong Pipeline on November 6, 2024 and sell it today you would earn a total of 42.00 from holding XinJiang GuoTong Pipeline or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Wanhua Chemical Group
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Wanhua Chemical Group |
XinJiang GuoTong and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Wanhua Chemical
The main advantage of trading using opposite XinJiang GuoTong and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| XinJiang GuoTong vs. Longjian Road Bridge | XinJiang GuoTong vs. RoadMain T Co | XinJiang GuoTong vs. Lander Sports Development | XinJiang GuoTong vs. Silkroad Visual Technology |
| Wanhua Chemical vs. Grandblue Environment Co | Wanhua Chemical vs. Spring Airlines Co | Wanhua Chemical vs. City Development Environment | Wanhua Chemical vs. Sunny Loan Top |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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