Correlation Between Xilong Chemical and Shenzhen Noposion
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By analyzing existing cross correlation between Xilong Chemical Co and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Xilong Chemical and Shenzhen Noposion 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 Xilong Chemical with a short position of Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Shenzhen Noposion.
Diversification Opportunities for Xilong Chemical and Shenzhen Noposion
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xilong and Shenzhen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion and Xilong Chemical 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 Xilong Chemical Co are associated (or correlated) with Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Xilong Chemical and Shenzhen Noposion
Assuming the 90 days trading horizon Xilong Chemical is expected to generate 1.75 times less return on investment than Shenzhen Noposion. In addition to that, Xilong Chemical is 1.41 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.05 per unit of volatility. If you would invest 587.00 in Shenzhen Noposion Agrochemicals on October 31, 2024 and sell it today you would earn a total of 400.00 from holding Shenzhen Noposion Agrochemicals or generate 68.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Xilong Chemical |
| Shenzhen Noposion |
Xilong Chemical and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Shenzhen Noposion
The main advantage of trading using opposite Xilong Chemical and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Xilong Chemical vs. Quectel Wireless Solutions | Xilong Chemical vs. Zotye Automobile Co | Xilong Chemical vs. CIMC Vehicles Co | Xilong Chemical vs. Haima Automobile Group |
| Shenzhen Noposion vs. Inspur Software Co | Shenzhen Noposion vs. Qtone Education Group | Shenzhen Noposion vs. Southern PublishingMedia Co | Shenzhen Noposion vs. China Publishing Media |
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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