Correlation Between Xilong Chemical and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xilong Chemical Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Xilong Chemical and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Jiangsu Xinri.
Diversification Opportunities for Xilong Chemical and Jiangsu Xinri
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilong and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Xilong Chemical and Jiangsu Xinri
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 2.08 times more return on investment than Jiangsu Xinri. However, Xilong Chemical is 2.08 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.18 per unit of risk. If you would invest 792.00 in Xilong Chemical Co on September 5, 2024 and sell it today you would earn a total of 56.00 from holding Xilong Chemical Co or generate 7.07% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Xilong Chemical |
| Jiangsu Xinri E |
Xilong Chemical and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Jiangsu Xinri
The main advantage of trading using opposite Xilong Chemical and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Xilong Chemical vs. Jinling Hotel Corp | Xilong Chemical vs. Guangzhou KingTeller Technology | Xilong Chemical vs. Hangzhou Pinming Software | Xilong Chemical vs. XinJiang GuoTong Pipeline |
| Jiangsu Xinri vs. Ningxia Younglight Chemicals | Jiangsu Xinri vs. Ningxia Building Materials | Jiangsu Xinri vs. Xilong Chemical Co | Jiangsu Xinri vs. Jilin Chemical Fibre |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |