Correlation Between Xinjiang Beixin and Qinghai Huzhu
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Qinghai Huzhu Barley, you can compare the effects of market volatilities on Xinjiang Beixin and Qinghai Huzhu 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 Qinghai Huzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Qinghai Huzhu.
Diversification Opportunities for Xinjiang Beixin and Qinghai Huzhu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Qinghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Qinghai Huzhu Barley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Huzhu Barley 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 Qinghai Huzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Huzhu Barley has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Qinghai Huzhu go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Qinghai Huzhu
Assuming the 90 days trading horizon Xinjiang Beixin is expected to generate 4.35 times less return on investment than Qinghai Huzhu. But when comparing it to its historical volatility, Xinjiang Beixin RoadBridge is 1.29 times less risky than Qinghai Huzhu. It trades about 0.08 of its potential returns per unit of risk. Qinghai Huzhu Barley is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,065 in Qinghai Huzhu Barley on September 15, 2024 and sell it today you would earn a total of 157.00 from holding Qinghai Huzhu Barley or generate 14.74% 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. Qinghai Huzhu Barley
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Qinghai Huzhu Barley |
Xinjiang Beixin and Qinghai Huzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Qinghai Huzhu
The main advantage of trading using opposite Xinjiang Beixin and Qinghai Huzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Qinghai Huzhu 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 Qinghai Huzhu will offset losses from the drop in Qinghai Huzhu's long position.| Xinjiang Beixin vs. Ming Yang Smart | Xinjiang Beixin vs. 159681 | Xinjiang Beixin vs. 159005 | Xinjiang Beixin vs. Loctek Ergonomic Technology |
| Qinghai Huzhu vs. Sunwave Communications Co | Qinghai Huzhu vs. Xinjiang Beixin RoadBridge | Qinghai Huzhu vs. Xinjiang Communications Construction | Qinghai Huzhu vs. Eastern Communications 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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