Correlation Between Xinjiang Beixin and Xinxiang Chemical
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Xinjiang Beixin and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Xinxiang Chemical.
Diversification Opportunities for Xinjiang Beixin and Xinxiang Chemical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Xinxiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Xinxiang Chemical
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to under-perform the Xinxiang Chemical. In addition to that, Xinjiang Beixin is 1.19 times more volatile than Xinxiang Chemical Fiber. It trades about -0.19 of its total potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about -0.15 per unit of volatility. If you would invest 451.00 in Xinxiang Chemical Fiber on October 14, 2024 and sell it today you would lose (54.00) from holding Xinxiang Chemical Fiber or give up 11.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Xinxiang Chemical Fiber |
Xinjiang Beixin and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Xinxiang Chemical
The main advantage of trading using opposite Xinjiang Beixin and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Xinjiang Beixin vs. Touchstone International Medical | Xinjiang Beixin vs. Bank of Communications | Xinjiang Beixin vs. Shaanxi Meineng Clean | Xinjiang Beixin vs. Allwin Telecommunication Co |
| Xinxiang Chemical vs. Xinjiang Beixin RoadBridge | Xinxiang Chemical vs. China Eastern Airlines | Xinxiang Chemical vs. Dymatic Chemicals | Xinxiang Chemical vs. Xilong Chemical 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 CEOs Directory module to screen CEOs from public companies around the world.
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