Correlation Between XinJiang GuoTong and Bank of China
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Bank of China, you can compare the effects of market volatilities on XinJiang GuoTong and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Bank of China.
Diversification Opportunities for XinJiang GuoTong and Bank of China
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between XinJiang and Bank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Bank of China go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Bank of China
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Bank of China. In addition to that, XinJiang GuoTong is 2.2 times more volatile than Bank of China. It trades about -0.01 of its total potential returns per unit of risk. Bank of China is currently generating about 0.1 per unit of volatility. If you would invest 303.00 in Bank of China on October 11, 2024 and sell it today you would earn a total of 243.00 from holding Bank of China or generate 80.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Bank of China
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Bank of China |
XinJiang GuoTong and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Bank of China
The main advantage of trading using opposite XinJiang GuoTong and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| XinJiang GuoTong vs. Sichuan Teway Food | XinJiang GuoTong vs. TongFu Microelectronics Co | XinJiang GuoTong vs. Shanghai Ziyan Foods | XinJiang GuoTong vs. Anji Foodstuff Co |
| Bank of China vs. Kuang Chi Technologies | Bank of China vs. Shenzhen Noposion Agrochemicals | Bank of China vs. Dymatic Chemicals | Bank of China vs. XinJiang GuoTong Pipeline |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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