Correlation Between Xilong Chemical and China Publishing
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By analyzing existing cross correlation between Xilong Chemical Co and China Publishing Media, you can compare the effects of market volatilities on Xilong Chemical and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and China Publishing.
Diversification Opportunities for Xilong Chemical and China Publishing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilong and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and China Publishing go up and down completely randomly.
Pair Corralation between Xilong Chemical and China Publishing
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 0.95 times more return on investment than China Publishing. However, Xilong Chemical Co is 1.05 times less risky than China Publishing. It trades about 0.16 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.07 per unit of risk. If you would invest 795.00 in Xilong Chemical Co on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Xilong Chemical Co or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. China Publishing Media
Performance |
| Timeline |
| Xilong Chemical |
| China Publishing Media |
Xilong Chemical and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and China Publishing
The main advantage of trading using opposite Xilong Chemical and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Xilong Chemical vs. Zijin Mining Group | Xilong Chemical vs. Wanhua Chemical Group | Xilong Chemical vs. Baoshan Iron Steel | Xilong Chemical vs. Shandong Gold Mining |
| China Publishing vs. Ming Yang Smart | China Publishing vs. 159681 | China Publishing vs. 159005 | China Publishing vs. Loctek Ergonomic Technology |
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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