Correlation Between XinJiang GuoTong and China Construction
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and China Construction Bank, you can compare the effects of market volatilities on XinJiang GuoTong and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and China Construction.
Diversification Opportunities for XinJiang GuoTong and China Construction
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and China Construction go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and China Construction
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 3.14 times more return on investment than China Construction. However, XinJiang GuoTong is 3.14 times more volatile than China Construction Bank. It trades about 0.09 of its potential returns per unit of risk. China Construction Bank is currently generating about -0.07 per unit of risk. If you would invest 871.00 in XinJiang GuoTong Pipeline on September 3, 2024 and sell it today you would earn a total of 35.00 from holding XinJiang GuoTong Pipeline or generate 4.02% 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. China Construction Bank
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| China Construction Bank |
XinJiang GuoTong and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and China Construction
The main advantage of trading using opposite XinJiang GuoTong and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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