Correlation Between Xinjiang Beixin and Jiangxi Selon
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Xinjiang Beixin and Jiangxi Selon 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 Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Jiangxi Selon.
Diversification Opportunities for Xinjiang Beixin and Jiangxi Selon
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and Jiangxi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon 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 Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Jiangxi Selon
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to under-perform the Jiangxi Selon. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Beixin RoadBridge is 1.26 times less risky than Jiangxi Selon. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangxi Selon Industrial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Jiangxi Selon Industrial on October 16, 2024 and sell it today you would lose (284.00) from holding Jiangxi Selon Industrial or give up 26.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Jiangxi Selon Industrial |
Xinjiang Beixin and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Jiangxi Selon
The main advantage of trading using opposite Xinjiang Beixin and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.| Xinjiang Beixin vs. Heren Health Co | Xinjiang Beixin vs. Hunan Investment Group | Xinjiang Beixin vs. Zoje Resources Investment | Xinjiang Beixin vs. Tieling Newcity Investment |
| Jiangxi Selon vs. Xinjiang Beixin RoadBridge | Jiangxi Selon vs. Jonjee Hi tech Industrial | Jiangxi Selon vs. Sichuan Yahua Industrial | Jiangxi Selon vs. Hangzhou Arcvideo 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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