Correlation Between Xizi Clean and Inner Mongolia
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By analyzing existing cross correlation between Xizi Clean Energy and Inner Mongolia Furui, you can compare the effects of market volatilities on Xizi Clean and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Inner Mongolia.
Diversification Opportunities for Xizi Clean and Inner Mongolia
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xizi and Inner is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Xizi Clean i.e., Xizi Clean and Inner Mongolia go up and down completely randomly.
Pair Corralation between Xizi Clean and Inner Mongolia
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Inner Mongolia. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.56 times less risky than Inner Mongolia. The stock trades about -0.01 of its potential returns per unit of risk. The Inner Mongolia Furui is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,922 in Inner Mongolia Furui on September 3, 2024 and sell it today you would earn a total of 1,860 from holding Inner Mongolia Furui or generate 96.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Inner Mongolia Furui
Performance |
| Timeline |
| Xizi Clean Energy |
| Inner Mongolia Furui |
Xizi Clean and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Inner Mongolia
The main advantage of trading using opposite Xizi Clean and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean vs. Holitech Technology Co |
| Inner Mongolia vs. Dook Media Group | Inner Mongolia vs. GreenTech Environmental Co | Inner Mongolia vs. Xizi Clean Energy | Inner Mongolia vs. Lingyuan Iron Steel |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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