Correlation Between Xizi Clean and Jiujiang Shanshui
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By analyzing existing cross correlation between Xizi Clean Energy and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Xizi Clean and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Jiujiang Shanshui.
Diversification Opportunities for Xizi Clean and Jiujiang Shanshui
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xizi and Jiujiang is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Xizi Clean i.e., Xizi Clean and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Xizi Clean and Jiujiang Shanshui
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.81 times more return on investment than Jiujiang Shanshui. However, Xizi Clean is 1.81 times more volatile than Jiujiang Shanshui Technology. It trades about 0.23 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.02 per unit of risk. If you would invest 1,101 in Xizi Clean Energy on October 24, 2024 and sell it today you would earn a total of 184.00 from holding Xizi Clean Energy or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Xizi Clean Energy |
| Jiujiang Shanshui |
Xizi Clean and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Jiujiang Shanshui
The main advantage of trading using opposite Xizi Clean and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Xizi Clean vs. Ningxia Younglight Chemicals | Xizi Clean vs. Allgens Medical Technology | Xizi Clean vs. Liuzhou Chemical Industry | Xizi Clean vs. Guizhou Chanhen Chemical |
| Jiujiang Shanshui vs. Epoxy Base Electronic | Jiujiang Shanshui vs. Jiangsu Jinling Sports | Jiujiang Shanshui vs. Hubeiyichang Transportation Group | Jiujiang Shanshui 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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