Correlation Between Xinjiang Beixin and Xizi Clean
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Xizi Clean Energy, you can compare the effects of market volatilities on Xinjiang Beixin and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Xizi Clean.
Diversification Opportunities for Xinjiang Beixin and Xizi Clean
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Xizi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Xizi Clean go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Xizi Clean
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Beixin RoadBridge is 1.1 times less risky than Xizi Clean. The stock trades about -0.01 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,506 in Xizi Clean Energy on September 3, 2024 and sell it today you would lose (305.00) from holding Xizi Clean Energy or give up 20.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Xizi Clean Energy
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Xizi Clean Energy |
Xinjiang Beixin and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Xizi Clean
The main advantage of trading using opposite Xinjiang Beixin and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Xinjiang Beixin vs. Cultural Investment Holdings | Xinjiang Beixin vs. Gome Telecom Equipment | Xinjiang Beixin vs. Bus Online Co | Xinjiang Beixin vs. Holitech Technology Co |
| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean vs. Holitech Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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