Correlation Between XinJiang GuoTong and Wuhan Yangtze
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Wuhan Yangtze Communication, you can compare the effects of market volatilities on XinJiang GuoTong and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Wuhan Yangtze.
Diversification Opportunities for XinJiang GuoTong and Wuhan Yangtze
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Wuhan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Wuhan Yangtze
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Wuhan Yangtze. In addition to that, XinJiang GuoTong is 1.53 times more volatile than Wuhan Yangtze Communication. It trades about -0.26 of its total potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about -0.36 per unit of volatility. If you would invest 2,708 in Wuhan Yangtze Communication on October 16, 2024 and sell it today you would lose (569.00) from holding Wuhan Yangtze Communication or give up 21.01% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Wuhan Yangtze Commun |
XinJiang GuoTong and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Wuhan Yangtze
The main advantage of trading using opposite XinJiang GuoTong and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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