Correlation Between Xinjiang Beixin and Jiujiang Shanshui
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Xinjiang Beixin and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Jiujiang Shanshui.
Diversification Opportunities for Xinjiang Beixin and Jiujiang Shanshui
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Jiujiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Jiujiang Shanshui
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to generate 1.58 times more return on investment than Jiujiang Shanshui. However, Xinjiang Beixin is 1.58 times more volatile than Jiujiang Shanshui Technology. It trades about 0.12 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.11 per unit of risk. If you would invest 372.00 in Xinjiang Beixin RoadBridge on August 31, 2024 and sell it today you would earn a total of 31.00 from holding Xinjiang Beixin RoadBridge or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Jiujiang Shanshui |
Xinjiang Beixin and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Jiujiang Shanshui
The main advantage of trading using opposite Xinjiang Beixin and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui'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 |
| Jiujiang Shanshui vs. Chengdu Xinzhu RoadBridge | Jiujiang Shanshui vs. Dazhong Transportation Group | Jiujiang Shanshui vs. Xinjiang Beixin RoadBridge | Jiujiang Shanshui vs. Shaanxi Broadcast TV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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