Correlation Between Xilong Chemical and Crown Advanced
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By analyzing existing cross correlation between Xilong Chemical Co and Crown Advanced Material, you can compare the effects of market volatilities on Xilong Chemical and Crown Advanced 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 Crown Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Crown Advanced.
Diversification Opportunities for Xilong Chemical and Crown Advanced
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xilong and Crown is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Crown Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Advanced Material 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 Crown Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Advanced Material has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Crown Advanced go up and down completely randomly.
Pair Corralation between Xilong Chemical and Crown Advanced
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 0.62 times more return on investment than Crown Advanced. However, Xilong Chemical Co is 1.61 times less risky than Crown Advanced. It trades about 0.09 of its potential returns per unit of risk. Crown Advanced Material is currently generating about 0.05 per unit of risk. If you would invest 747.00 in Xilong Chemical Co on August 25, 2024 and sell it today you would earn a total of 47.00 from holding Xilong Chemical Co or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Crown Advanced Material
Performance |
| Timeline |
| Xilong Chemical |
| Crown Advanced Material |
Xilong Chemical and Crown Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Crown Advanced
The main advantage of trading using opposite Xilong Chemical and Crown Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Crown Advanced 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 Crown Advanced will offset losses from the drop in Crown Advanced'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 |
| Crown Advanced vs. Dongnan Electronics Co | Crown Advanced vs. Xilong Chemical Co | Crown Advanced vs. Shandong Ruifeng Chemical | Crown Advanced vs. Hoshine Silicon Ind |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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