Correlation Between Xizi Clean and Xinjiang Beixin
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By analyzing existing cross correlation between Xizi Clean Energy and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Xizi Clean and Xinjiang Beixin 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 Xizi Clean with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Xinjiang Beixin.
Diversification Opportunities for Xizi Clean and Xinjiang Beixin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xizi and Xinjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Xizi Clean 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 Xizi Clean Energy are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Xizi Clean i.e., Xizi Clean and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Xizi Clean and Xinjiang Beixin
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Xinjiang Beixin. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.65 times less risky than Xinjiang Beixin. The stock trades about -0.13 of its potential returns per unit of risk. The Xinjiang Beixin RoadBridge is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Xinjiang Beixin RoadBridge on August 31, 2024 and sell it today you would earn a total of 43.00 from holding Xinjiang Beixin RoadBridge or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Xizi Clean Energy |
| Xinjiang Beixin Road |
Xizi Clean and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Xinjiang Beixin
The main advantage of trading using opposite Xizi Clean and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Xinjiang Beixin 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 Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Xizi Clean vs. Miracll Chemicals Co | Xizi Clean vs. Ningbo Kangqiang Electronics | Xizi Clean vs. Ping An Insurance | Xizi Clean vs. Leyard Optoelectronic |
| Xinjiang Beixin vs. Humanwell Healthcare Group | Xinjiang Beixin vs. De Rucci Healthy | Xinjiang Beixin vs. Xinke Material | Xinjiang Beixin vs. Kangxin New Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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