Correlation Between Xinjiang Beixin and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Citic Guoan Wine, you can compare the effects of market volatilities on Xinjiang Beixin and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Citic Guoan.
Diversification Opportunities for Xinjiang Beixin and Citic Guoan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Citic is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Citic Guoan go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Citic Guoan
Assuming the 90 days trading horizon Xinjiang Beixin is expected to generate 1.28 times less return on investment than Citic Guoan. In addition to that, Xinjiang Beixin is 1.16 times more volatile than Citic Guoan Wine. It trades about 0.1 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.15 per unit of volatility. If you would invest 516.00 in Citic Guoan Wine on September 19, 2024 and sell it today you would earn a total of 89.00 from holding Citic Guoan Wine or generate 17.25% 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. Citic Guoan Wine
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Citic Guoan Wine |
Xinjiang Beixin and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Citic Guoan
The main advantage of trading using opposite Xinjiang Beixin and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Xinjiang Beixin vs. Ming Yang Smart | Xinjiang Beixin vs. 159681 | Xinjiang Beixin vs. 159005 | Xinjiang Beixin vs. Loctek Ergonomic Technology |
| Citic Guoan vs. Xinjiang Beixin RoadBridge | Citic Guoan vs. Anhui Transport Consulting | Citic Guoan vs. Wintao Communications Co | Citic Guoan vs. Longjian Road Bridge |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |