Correlation Between Zhejiang Kingland and XinJiang GuoTong
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Zhejiang Kingland and XinJiang GuoTong 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 Zhejiang Kingland with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and XinJiang GuoTong.
Diversification Opportunities for Zhejiang Kingland and XinJiang GuoTong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and XinJiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Zhejiang Kingland 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 Zhejiang Kingland Pipeline are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and XinJiang GuoTong
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.53 times more return on investment than XinJiang GuoTong. However, Zhejiang Kingland Pipeline is 1.89 times less risky than XinJiang GuoTong. It trades about 0.09 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.01 per unit of risk. If you would invest 622.00 in Zhejiang Kingland Pipeline on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Zhejiang Kingland Pipeline or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Zhejiang Kingland |
| XinJiang GuoTong Pipeline |
Zhejiang Kingland and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and XinJiang GuoTong
The main advantage of trading using opposite Zhejiang Kingland and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Zhejiang Kingland vs. Cangzhou Mingzhu Plastic | Zhejiang Kingland vs. Ningxia Building Materials | Zhejiang Kingland vs. Hangzhou Gaoxin Rubber | Zhejiang Kingland vs. Songz Automobile Air |
| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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