Correlation Between Chenzhou Jingui and Xinjiang Zhongtai
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Chenzhou Jingui and Xinjiang Zhongtai 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 Chenzhou Jingui with a short position of Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Xinjiang Zhongtai.
Diversification Opportunities for Chenzhou Jingui and Xinjiang Zhongtai
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chenzhou and Xinjiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Xinjiang Zhongtai
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.64 times more return on investment than Xinjiang Zhongtai. However, Chenzhou Jingui is 1.64 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.18 per unit of risk. If you would invest 364.00 in Chenzhou Jingui Silver on September 14, 2024 and sell it today you would earn a total of 58.00 from holding Chenzhou Jingui Silver or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Xinjiang Zhongtai |
Chenzhou Jingui and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Xinjiang Zhongtai
The main advantage of trading using opposite Chenzhou Jingui and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Xinjiang Zhongtai 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 Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Shandong Gold Mining |
| Xinjiang Zhongtai vs. Linewell Software Co | Xinjiang Zhongtai vs. Hainan Mining Co | Xinjiang Zhongtai vs. Chenzhou Jingui Silver | Xinjiang Zhongtai vs. Fujian Rongji Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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