Correlation Between Xinjiang Beixin and Hunan Investment
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Hunan Investment Group, you can compare the effects of market volatilities on Xinjiang Beixin and Hunan Investment 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 Beixin with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Hunan Investment.
Diversification Opportunities for Xinjiang Beixin and Hunan Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Hunan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Xinjiang Beixin 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 Beixin RoadBridge are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Hunan Investment go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Hunan Investment
Assuming the 90 days trading horizon Xinjiang Beixin is expected to generate 1.11 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, Xinjiang Beixin RoadBridge is 1.06 times less risky than Hunan Investment. It trades about 0.18 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Hunan Investment Group on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Hunan Investment Group or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Hunan Investment Group
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Hunan Investment |
Xinjiang Beixin and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Hunan Investment
The main advantage of trading using opposite Xinjiang Beixin and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Xinjiang Beixin vs. 159681 | Xinjiang Beixin vs. 159005 | Xinjiang Beixin vs. Loctek Ergonomic Technology | Xinjiang Beixin vs. 516220 |
| Hunan Investment vs. Unisplendour Corp | Hunan Investment vs. Longjian Road Bridge | Hunan Investment vs. Xinjiang Beixin RoadBridge | Hunan Investment vs. Shandong Hi Speed RoadBridge |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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