Correlation Between Xizi Clean and Qinghaihuading Industrial
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By analyzing existing cross correlation between Xizi Clean Energy and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Xizi Clean and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Qinghaihuading Industrial.
Diversification Opportunities for Xizi Clean and Qinghaihuading Industrial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Qinghaihuading is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Xizi Clean i.e., Xizi Clean and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Xizi Clean and Qinghaihuading Industrial
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Qinghaihuading Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 2.03 times less risky than Qinghaihuading Industrial. The stock trades about -0.15 of its potential returns per unit of risk. The Qinghaihuading Industrial Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 477.00 in Qinghaihuading Industrial Co on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Qinghaihuading Industrial Co or generate 22.01% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Xizi Clean Energy |
| Qinghaihuading Industrial |
Xizi Clean and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Qinghaihuading Industrial
The main advantage of trading using opposite Xizi Clean and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Bank of China | Xizi Clean vs. PetroChina Co Ltd |
| Qinghaihuading Industrial vs. Agricultural Bank of | Qinghaihuading Industrial vs. Industrial and Commercial | Qinghaihuading Industrial vs. Bank of China | Qinghaihuading Industrial vs. PetroChina Co Ltd |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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