Correlation Between XinJiang GuoTong and Guizhou BroadcastingTV
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on XinJiang GuoTong and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Guizhou BroadcastingTV.
Diversification Opportunities for XinJiang GuoTong and Guizhou BroadcastingTV
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Guizhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Guizhou BroadcastingTV
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.15 times more return on investment than Guizhou BroadcastingTV. However, XinJiang GuoTong is 1.15 times more volatile than Guizhou BroadcastingTV Info. It trades about 0.16 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about 0.15 per unit of risk. If you would invest 656.00 in XinJiang GuoTong Pipeline on August 29, 2024 and sell it today you would earn a total of 212.00 from holding XinJiang GuoTong Pipeline or generate 32.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Guizhou BroadcastingTV Info
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Guizhou BroadcastingTV |
XinJiang GuoTong and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Guizhou BroadcastingTV
The main advantage of trading using opposite XinJiang GuoTong and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.| XinJiang GuoTong vs. PetroChina Co Ltd | XinJiang GuoTong vs. China State Construction | XinJiang GuoTong vs. China Mobile Limited | XinJiang GuoTong vs. Industrial and Commercial |
| Guizhou BroadcastingTV vs. Industrial and Commercial | Guizhou BroadcastingTV vs. Agricultural Bank of | Guizhou BroadcastingTV vs. China Construction Bank | Guizhou BroadcastingTV vs. Bank of China |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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