Correlation Between Xizi Clean and Aba Chemicals
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By analyzing existing cross correlation between Xizi Clean Energy and Aba Chemicals Corp, you can compare the effects of market volatilities on Xizi Clean and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Aba Chemicals.
Diversification Opportunities for Xizi Clean and Aba Chemicals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Aba is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Xizi Clean i.e., Xizi Clean and Aba Chemicals go up and down completely randomly.
Pair Corralation between Xizi Clean and Aba Chemicals
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.4 times more return on investment than Aba Chemicals. However, Xizi Clean is 1.4 times more volatile than Aba Chemicals Corp. It trades about 0.12 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.33 per unit of risk. If you would invest 1,152 in Xizi Clean Energy on October 17, 2024 and sell it today you would earn a total of 94.00 from holding Xizi Clean Energy or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Aba Chemicals Corp
Performance |
| Timeline |
| Xizi Clean Energy |
| Aba Chemicals Corp |
Xizi Clean and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Aba Chemicals
The main advantage of trading using opposite Xizi Clean and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Xizi Clean vs. Lootom Telcovideo Network | Xizi Clean vs. Bohai Leasing Co | Xizi Clean vs. Zhengzhou Coal Mining | Xizi Clean vs. Uroica Mining Safety |
| Aba Chemicals vs. Gifore Agricultural Machinery | Aba Chemicals vs. Lutian Machinery Co | Aba Chemicals vs. Hua Xia Bank | Aba Chemicals vs. Xizi Clean Energy |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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