Correlation Between Xinjiang Beixin and Sichuan Yahua
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Xinjiang Beixin and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Sichuan Yahua.
Diversification Opportunities for Xinjiang Beixin and Sichuan Yahua
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Sichuan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Sichuan Yahua
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to under-perform the Sichuan Yahua. In addition to that, Xinjiang Beixin is 1.49 times more volatile than Sichuan Yahua Industrial. It trades about -0.22 of its total potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about -0.13 per unit of volatility. If you would invest 1,282 in Sichuan Yahua Industrial on October 12, 2024 and sell it today you would lose (114.00) from holding Sichuan Yahua Industrial or give up 8.89% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Sichuan Yahua Industrial |
Xinjiang Beixin and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Sichuan Yahua
The main advantage of trading using opposite Xinjiang Beixin and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Xinjiang Beixin vs. Guangdong Jinma Entertainment | Xinjiang Beixin vs. Eastroc Beverage Group | Xinjiang Beixin vs. Ciwen Media Co | Xinjiang Beixin vs. Chongqing Changan Automobile |
| Sichuan Yahua vs. Fujian Longzhou Transportation | Sichuan Yahua vs. Anshan Senyuan Road | Sichuan Yahua vs. Xinjiang Beixin RoadBridge | Sichuan Yahua vs. Silkroad Visual Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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