Correlation Between Xinjiang Beixin and Zoy Home
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Zoy Home Furnishing, you can compare the effects of market volatilities on Xinjiang Beixin and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Zoy Home.
Diversification Opportunities for Xinjiang Beixin and Zoy Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Zoy is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and Zoy Home go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Zoy Home
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to generate 1.45 times more return on investment than Zoy Home. However, Xinjiang Beixin is 1.45 times more volatile than Zoy Home Furnishing. It trades about 0.14 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.19 per unit of risk. If you would invest 378.00 in Xinjiang Beixin RoadBridge on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Xinjiang Beixin RoadBridge or generate 9.79% 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. Zoy Home Furnishing
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Zoy Home Furnishing |
Xinjiang Beixin and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Zoy Home
The main advantage of trading using opposite Xinjiang Beixin and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Xinjiang Beixin vs. Humanwell Healthcare Group | Xinjiang Beixin vs. De Rucci Healthy | Xinjiang Beixin vs. Xinke Material | Xinjiang Beixin vs. Kangxin New Materials |
| Zoy Home vs. Xinhua Winshare Publishing | Zoy Home vs. Dhc Software Co | Zoy Home vs. Yingde Greatchem Chemicals | Zoy Home vs. Shanghai Action Education |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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