Correlation Between Xilong Chemical and Shenzhen Silver
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By analyzing existing cross correlation between Xilong Chemical Co and Shenzhen Silver Basis, you can compare the effects of market volatilities on Xilong Chemical and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Shenzhen Silver.
Diversification Opportunities for Xilong Chemical and Shenzhen Silver
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xilong and Shenzhen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Xilong Chemical and Shenzhen Silver
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 1.24 times more return on investment than Shenzhen Silver. However, Xilong Chemical is 1.24 times more volatile than Shenzhen Silver Basis. It trades about -0.21 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.49 per unit of risk. If you would invest 915.00 in Xilong Chemical Co on October 14, 2024 and sell it today you would lose (126.00) from holding Xilong Chemical Co or give up 13.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Xilong Chemical |
| Shenzhen Silver Basis |
Xilong Chemical and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Shenzhen Silver
The main advantage of trading using opposite Xilong Chemical and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Xilong Chemical vs. Changjiang Publishing Media | Xilong Chemical vs. Time Publishing and | Xilong Chemical vs. Shenzhen Noposion Agrochemicals | Xilong Chemical vs. Jiangsu Phoenix Publishing |
| Shenzhen Silver vs. Fiberhome Telecommunication Technologies | Shenzhen Silver vs. Ziel Home Furnishing | Shenzhen Silver vs. Xilong Chemical Co | Shenzhen Silver vs. Shandong Homey Aquatic |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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