Correlation Between Tongding Interconnection and Xinjiang Tianshun
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By analyzing existing cross correlation between Tongding Interconnection Information and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Tongding Interconnection and Xinjiang Tianshun 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 Tongding Interconnection with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Xinjiang Tianshun.
Diversification Opportunities for Tongding Interconnection and Xinjiang Tianshun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply and Tongding Interconnection 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 Tongding Interconnection Information are associated (or correlated) with Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Tongding Interconnection i.e., Tongding Interconnection and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Xinjiang Tianshun
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 0.86 times more return on investment than Xinjiang Tianshun. However, Tongding Interconnection Information is 1.16 times less risky than Xinjiang Tianshun. It trades about 0.27 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of risk. If you would invest 322.00 in Tongding Interconnection Information on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Tongding Interconnection Information or generate 53.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Tongding Interconnection |
| Xinjiang Tianshun Supply |
Tongding Interconnection and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Xinjiang Tianshun
The main advantage of trading using opposite Tongding Interconnection and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Tongding Interconnection vs. Industrial and Commercial | Tongding Interconnection vs. China Construction Bank | Tongding Interconnection vs. Bank of China | Tongding Interconnection vs. Agricultural Bank of |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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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