Correlation Between Chenzhou Jingui and Xinjiang Tianrun
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Chenzhou Jingui and Xinjiang Tianrun 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 Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Xinjiang Tianrun.
Diversification Opportunities for Chenzhou Jingui and Xinjiang Tianrun
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chenzhou and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Xinjiang Tianrun
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.43 times more return on investment than Xinjiang Tianrun. However, Chenzhou Jingui is 1.43 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.05 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.04 per unit of risk. If you would invest 284.00 in Chenzhou Jingui Silver on September 12, 2024 and sell it today you would earn a total of 103.00 from holding Chenzhou Jingui Silver or generate 36.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Xinjiang Tianrun Dairy |
Chenzhou Jingui and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Xinjiang Tianrun
The main advantage of trading using opposite Chenzhou Jingui and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Rongsheng Petrochemical Co |
| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
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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