Correlation Between Xinjiang Beixin and GreenTech Environmental
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and GreenTech Environmental Co, you can compare the effects of market volatilities on Xinjiang Beixin and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and GreenTech Environmental.
Diversification Opportunities for Xinjiang Beixin and GreenTech Environmental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and GreenTech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Xinjiang Beixin i.e., Xinjiang Beixin and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and GreenTech Environmental
Assuming the 90 days trading horizon Xinjiang Beixin is expected to generate 2.34 times less return on investment than GreenTech Environmental. In addition to that, Xinjiang Beixin is 1.06 times more volatile than GreenTech Environmental Co. It trades about 0.01 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.02 per unit of volatility. If you would invest 1,280 in GreenTech Environmental Co on October 14, 2024 and sell it today you would earn a total of 19.00 from holding GreenTech Environmental Co or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. GreenTech Environmental Co
Performance |
| Timeline |
| Xinjiang Beixin Road |
| GreenTech Environmental |
Xinjiang Beixin and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and GreenTech Environmental
The main advantage of trading using opposite Xinjiang Beixin and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Xinjiang Beixin vs. Touchstone International Medical | Xinjiang Beixin vs. Bank of Communications | Xinjiang Beixin vs. Shaanxi Meineng Clean | Xinjiang Beixin vs. Allwin Telecommunication 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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