Correlation Between Xizi Clean and Xinjiang Tianrun
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By analyzing existing cross correlation between Xizi Clean Energy and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Xizi Clean and Xinjiang Tianrun 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 Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Xinjiang Tianrun.
Diversification Opportunities for Xizi Clean and Xinjiang Tianrun
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xizi and Xinjiang is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Xizi Clean i.e., Xizi Clean and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Xizi Clean and Xinjiang Tianrun
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.07 times more return on investment than Xinjiang Tianrun. However, Xizi Clean is 1.07 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 per unit of risk. If you would invest 1,079 in Xizi Clean Energy on November 3, 2024 and sell it today you would earn a total of 146.00 from holding Xizi Clean Energy or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Xizi Clean Energy |
| Xinjiang Tianrun Dairy |
Xizi Clean and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Xinjiang Tianrun
The main advantage of trading using opposite Xizi Clean and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun'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 |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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