Correlation Between Jiangxi Hengda and XinJiang GuoTong
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Jiangxi Hengda and XinJiang GuoTong 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 Jiangxi Hengda with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and XinJiang GuoTong.
Diversification Opportunities for Jiangxi Hengda and XinJiang GuoTong
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and XinJiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and XinJiang GuoTong
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.17 times more return on investment than XinJiang GuoTong. However, Jiangxi Hengda is 1.17 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.0 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of risk. If you would invest 691.00 in Jiangxi Hengda Hi Tech on September 2, 2024 and sell it today you would lose (112.00) from holding Jiangxi Hengda Hi Tech or give up 16.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| XinJiang GuoTong Pipeline |
Jiangxi Hengda and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and XinJiang GuoTong
The main advantage of trading using opposite Jiangxi Hengda and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Jiangxi Hengda vs. Nuode Investment Co | Jiangxi Hengda vs. Guilin Seamild Foods | Jiangxi Hengda vs. Caihong Display Devices | Jiangxi Hengda vs. Metro Investment Development |
| XinJiang GuoTong vs. Suzhou Mingzhi Technology | XinJiang GuoTong vs. Jiangxi Hengda Hi Tech | XinJiang GuoTong vs. Glodon Software Co | XinJiang GuoTong vs. Linewell Software Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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