Correlation Between Dalian Zeus and Xinjiang Communications
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By analyzing existing cross correlation between Dalian Zeus Entertainment and Xinjiang Communications Construction, you can compare the effects of market volatilities on Dalian Zeus and Xinjiang Communications 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 Dalian Zeus with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Zeus and Xinjiang Communications.
Diversification Opportunities for Dalian Zeus and Xinjiang Communications
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dalian and Xinjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Zeus Entertainment and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Dalian Zeus 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 Dalian Zeus Entertainment are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Dalian Zeus i.e., Dalian Zeus and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Dalian Zeus and Xinjiang Communications
Assuming the 90 days trading horizon Dalian Zeus Entertainment is expected to generate 1.29 times more return on investment than Xinjiang Communications. However, Dalian Zeus is 1.29 times more volatile than Xinjiang Communications Construction. It trades about 0.26 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.15 per unit of risk. If you would invest 257.00 in Dalian Zeus Entertainment on September 2, 2024 and sell it today you would earn a total of 233.00 from holding Dalian Zeus Entertainment or generate 90.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Zeus Entertainment vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Dalian Zeus Entertainment |
| Xinjiang Communications |
Dalian Zeus and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Zeus and Xinjiang Communications
The main advantage of trading using opposite Dalian Zeus and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Zeus position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Dalian Zeus vs. Shenzhen MYS Environmental | Dalian Zeus vs. AVIC Fund Management | Dalian Zeus vs. Penghua Shenzhen Energy | Dalian Zeus vs. Jizhong Energy Resources |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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