Correlation Between XinJiang GuoTong and Guangdong Liantai
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Guangdong Liantai Environmental, you can compare the effects of market volatilities on XinJiang GuoTong and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Guangdong Liantai.
Diversification Opportunities for XinJiang GuoTong and Guangdong Liantai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Guangdong Liantai go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Guangdong Liantai
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.5 times more return on investment than Guangdong Liantai. However, XinJiang GuoTong is 1.5 times more volatile than Guangdong Liantai Environmental. It trades about -0.01 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of risk. If you would invest 1,162 in XinJiang GuoTong Pipeline on October 29, 2024 and sell it today you would lose (349.00) from holding XinJiang GuoTong Pipeline or give up 30.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Guangdong Liantai |
XinJiang GuoTong and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Guangdong Liantai
The main advantage of trading using opposite XinJiang GuoTong and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| XinJiang GuoTong vs. CSSC Offshore Marine | XinJiang GuoTong vs. Anhui Fuhuang Steel | XinJiang GuoTong vs. Zoy Home Furnishing | XinJiang GuoTong vs. Markor International Home |
| Guangdong Liantai vs. Jiangxi Lianchuang Opto electronic | Guangdong Liantai vs. Shenzhen Topway Video | Guangdong Liantai vs. Leyard Optoelectronic | Guangdong Liantai vs. Cicc Fund Management |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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